Deutsche Telekom, one of the largest telecom providers in Europe, has invested in Celo blockchain payments platform to support the development of decentralized finance.
Cielo announced Tuesday that the telecom giant has made a “significant purchase” of the original CELO token through its strategic investment fund, Telekom Innovation Pool. The size of the investment in the company has not been specified.
In terms of investment, Deutsche Telekom has joined the Celo Alliance to Prosper – Celo’s ecosystem and network of more than 130 members, including non-profit organizations, sales representatives, payment processors and a blockchain company. According to the announcement, Deutsche Telekom is the first telecommunications company to join the alliance.
As part of this step, T-Systems MMS Deutsche Telekom will test the Open Telekom Cloud or OTC app. OTC complies with European regulations and ensures the availability of secure financial services via 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 the public blockchain network. He said, “We can protect the Celo network with our investments and cloud infrastructure, while driving more users and use cases on top of the Celo network.”
In addition, Deutsche Telekom will open the SMS API to enable auditors to send confirmation text messages using their services. According to the announcement, the variety of SMS service providers on the Celo platform enhances the security and reliability of the decentralized phone verification protocol, which plays an important role in the usability of the Celo blockchain.
“We are delighted that Deutsche Telekom helped secure the Celo network, develop Celo’s infrastructure and make a significant contribution as a verification tool. A strong combination of ownership of CELO and the creation of the first mobile platform will help accelerate market adoption. Digital assets, ”said the founder. Co-Cielo, Rene Rensburg.
Celo is an open source ecosystem focused on providing access to DeFi systems and tools via smartphones. Last year, the CEO of Blockdaemon, a member of the Celo alliance, predicted that the Celo ecosystem would soon include “PayPal in their home currencies.”
At the time of writing, CELO is trading at $ 4.03, down about 6% in the past 24 hours. A Deutsche Telekom spokesman reportedly said that any fluctuations in the value of Selo’s assets would not have a significant impact on the investment, given its size.