Deutsche Telekom, one of the largest telecommunications providers in Europe, has invested in the Celo blockchain payment platform to support the development of decentralized finance.
The telecoms giant has made a “significant purchase” of Celo’s native token CELO through its strategic investment fund, the Telekom Innovation Pool, Celo announced on Tuesday. The company did not specify the size of the investment.
Along with this investment, Deutsche Telekom joined the Celo Global Alliance for Prosperity – Celo’s ecosystem and a network of more than 130 members including non-profit organizations, merchants, payment processors and companies. blockchain. According to the announcement, Deutsche Telekom is the first telecommunications company to join the alliance.
As part of this transaction, Deutsche Telekom’s subsidiary, T-Systems MMS, will validate the implementation of the Open Telekom Cloud, or OTC. The OTC meets the compliance requirements of the European regulatory framework, ensuring that secure financial services are available through smartphones.
Adel Al-Saleh, board member of Deutsche Telekom and CEO of T-Systems, said the new strategic investment will help the company participate in a public blockchain network. “We are able to secure the Celo network with our investment and our own cloud infrastructure while facilitating user onboarding and development of use cases on top of the Celo network,” he said.
Additionally, Deutsche Telekom will open its SMS API to allow validators to send verification text messages using their service. According to the announcement, the diversity of SMS providers on the Celo platform improves both the security and reliability of the decentralized phone verification protocol, which plays a key role in the usability of the Celo blockchain.
“We are delighted that Deutsche Telekom is helping secure the Celo network, developing the Celo infrastructure and making meaningful contributions as a validator.. The powerful combination of owning CELO and leveraging its mobile-first platform will help accelerate mass market adoption of digital assets, ”said Celo co-founder Rene Reinsberg.
Celo is an open source blockchain ecosystem focused on accessing DeFi systems and tools through a smartphone. Last year, the CEO of Blockdaemon, a member of the Celo alliance, predicted that the Celo ecosystem will soon include “PayPal up to speed with its own native currencies”.
At the time of writing, CELO is trading at $ 4.03, down almost 6% in the past 24 hours. A spokesperson for Deutsche Telekom is said to have said that any fluctuation in the value of its holdings in Celo would have no noticeable impact on the investment, given its size.