Deutsche Telekom, one of the largest telecom providers in Europe, has invested in blockchain payment platform Celo to support the development of decentralized financing.
The telecom giant has made a “significant purchase” of Celo’s native token CELO through its strategic investment fund, the Telekom Innovation Pool, Celo announced Tuesday. The firm has not specified the size of the investment.
In conjunction with the investment, Deutsche Telekom has joined the global Celo Alliance for Prosperity – the Celo ecosystem and a network of more than 130 members, including nonprofits, merchants, payment processors and blockchain companies. According to the announcement, Deutsche Telekom is the first telecom company to join the alliance.
As part of the move, Deutsche Telekom’s subsidiary T-Systems will validate MMS by implementing the Open Telekom Cloud or OTC. The OTC meets the compliance requirements within the European regulatory framework and ensures that secure financial services are available through smartphones.
Adel Al-Saleh, a member of the Deutsche Telekom board 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 use case development on top of the Celo network,” he said.
In addition, Deutsche Telekom will open its SMS API so that validators can send verification SMS 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 authentication protocol, which plays a key role in the usability of the Celo blockchain.
“We are delighted that Deutsche Telekom is helping to secure the Celo network, develop the Celo infrastructure and make meaningful contributions as a validator. The powerful combination of owning CELO and building on its mobile-first platform will help accelerate the mass market adoption of digital assets, ”said Celo co-founder Rene Reinsberg.
Celo is an open-source blockchain ecosystem aimed at enabling access to DeFi systems and tools via smartphone. Last year, the CEO of Celo alliance member Blockdaemon predicted that the Celo ecosystem will soon consist of “PayPal up to speed with its own currency.”
At the time of writing, CELO is trading at $ 4.03, down nearly 6% in the past 24 hours. A Deutsche Telekom spokesperson reportedly said that given the size, any fluctuations in the value of its Celo holdings would not have a noticeable impact on the investment.