TOKYO--(BUSINESS WIRE)--Simplex Inc. and Smart Contract Systems, Inc. (“SCS”), a subsidiary of Smart Contract Inc. (“SC”), today announced that they have agreed on a partnership to establish a joint venture company, Definity Inc. (“the Company”), that will provide “Cryptocurrency Dealing Platform” for liquidity providers (“LP”). The Company will start operations by May 2018.
Adoption of an advanced scheme to invest with Cryptocurrency “Ethereum”
The total contribution at the time of establishment is 200 million yen. While Simplex will invest 102 million yen in money (holding 51% of shares), SCS will invest 98 million yen in Ethereum (holding 49% of shares). Introducing the advanced contribution scheme, that is, to make contribution in kind of cryptocurrencies, the Company will further promote and facilitate the dissemination of cryptocurrencies within corporate activities.
While securing transparency and liquidity within cryptocurrency trading is considered crucial, the roles of influential cryptocurrency LPs, who trade in higher volumes and give great impact on the market volatility, are becoming even more complex and expanding. Given this current situation, Simplex and SCS have agreed to establish the Company that will provide trading platform for cryptocurrency LPs, aiming at the sound expansion of the cryptocurrency market.
The Company aims to provide a dealing system to SC, a leading cryptocurrency LP, and its affiliated company by July 2018. Establishing a beachhead, the Company also aims to develop an ASP for the dealing system for other cryptocurrency LPs worldwide, as well as a matching system that matches cryptocurrency LPs and cryptocurrency exchange service providers.
By utilizing Simplex’s advanced financial engineering and system development capabilities and SCS and its member companies’ network with companies registering at “Enterprise Ethereum Alliance” (“EEA” *1) and strong sales capabilities as one of the largest LPs in Asia, the Company aims to provide a cryptocurrency dealing platform that can achieve top market share and contribute to the sound development and expansion of the cryptocurrency market.
*1 Enterprise Ethereum Alliance (“EEA”) is a non-profit corporation established in February 2017 for the purpose of formulating standard specifications and sharing use cases of decentralized enterprise application platform called “Enterprise Ethereum.” EEA has a great number of members worldwide, from Japan, Europe to the United States. Not only SC joined EEA in May 2017, but also it engages in promotion activities of the working groups in Japan and promotion activities for enterprises, as the official Japan office.
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