Deutsche Telekom, the biggest telecommunications company in the EU, is the newest investor of CELO, a native token of Celo. The financials for the investment have not been disclosed.
Deutsche Telekom, a leading telecommunications company from Germany, has recently invested in Celo, an open-source blockchain platform that gives mobile phone users access to DeFi protocols. It is the first time that Celo is collaborating with a leading telecommunication firm.
Achieving transformation through DeFi
Deutsche Telekom is the leading telecommunications service provider in Europe. The firm recently announced that it had collaborated with Celo by purchasing the native token, CELO. Celo is committed to making DeFi protocols available and accessible to mobile users. The partnership will create a new avenue for the blockchain platform to increase DeFi adoption.
Speaking on the partnership, a board member for Deutsche Telekom, Adel Al-Saleh, stated that by investing in CELO, the company had taken a considerable stride in its attempts to participate in blockchain. The head of blockchain solutions at Deutsche Telekom also added that the increasing digitization of the industry had influenced the firm’s decision.
The Covid-19 pandemic has accelerated the growth and adoption of DeFi in various sectors. DeFi protocols are not only being used in cryptocurrencies but also in insurance. DeFi is seeking to improve on the limitations of traditional finance by creating a better way for people to transact. However, the telecommunications giant did not disclose the number of tokens purchased from the company.
Launch of cEURO stablecoin
A few weeks ago, Celo also announced the launch of a stablecoin dominated by the euro. The cEURO will make it easy for users to access cryptocurrencies despite their location. It will also increase transaction speed and increase the adoption of cryptocurrencies by investors.
The cEURO will be similar to the cUSD, which is dominated by the US dollar. These stablecoins are supported by several crypto assets that Celo holds in its reserve, including the two most popular cryptocurrencies, Bitcoin and Ether.
Speaking on the unveiling of cEURO, the company’s co-founder pointed out the existing limitation of sending money across borders. Celo’s open infrastructure and stablecoins made it possible for digital assets to be accessed worldwide quickly. The blockchain platform was hence bringing transformation to the EU.
Celo also collaborates with major players in DeFi and the crypto market through Celo Alliance. This alliance has over 130 members, including Coinbase, Anchorage, Mercy Corps, and Horowitz.