German-based telecommunications company Deutsche Telekom has invested in blockchain-based mobile payment platform Celo. This will be the first time a telecommunications company will join Celo’s Alliance for Prosperity, a global alliance of more than 130 members trying to build a prosperous financial system.
Deutsche Telekom Invests in Celo
Telecoms giant Deutsche Telekom has invested in the mobile-based DeFi platform Celo. Alongside the investment, Deutsche Telekom has also bought an unspecified amount of Celo’s native coin and plans for staking them.
Deutsche Telekom’s subsidiary T-Systems MMS will operate as a validator using the Open Telekom Cloud (OTC), a scalable cloud infrastructure system.
The OTC meets the security and compliance requirements of European regulations to ensure all financial services are secure and properly regulated, per the announcement.
In addition to being a validator on the network, Deutsche Telekom will allow validators to send verification text messages using its SMS API.
Increasing the diversity of SMS providers on the Celo platform improves both the security and reliability of the decentralized phone verification protocol.
Bringing DeFi to SmartPhones
Celo is an open-source blockchain project used in over 100 countries focused on bringing DeFi systems and tools to smartphones. It allows users to send and receive money with Celo’s native coin (CELO) through their mobile device.
Adel Al-Sale, Deutsche Telekom board member and CEO of T-Systems, says in the announcement:
“Our investment in CELO, combined with infrastructure operated by T-Systems, allows our company to take a strategic approach to participating 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 use-case development on top of the Celo network.”
Celo is an open-source blockchain-based global payments platform that allows users to make payments with a mobile phone. Its native Celo token has a market capitalization of around $800 million.