BlackChain and DMG Blockchain Notch Agreement for P2P Lending

Companies in the Canadian blockchain sector have no qualms about continuing to strengthen their portfolios. 

On Thursday (April 26), BlackChain Solutions (CSE:BIS) and DMG Blockchain Solutions (TSXV:DMGI) entered into a letter of intent that will allow BlackChain Solutions to license DMG’s Prometheus technology for its peer-to-peer (P2P) lending platform.

BlackChain will have exclusive rights to use DMG’s technology for P2P lending, while DMG will be entitled to any royalties associated with commercial revenues that BlackChain generates. The agreement is expected to be finalized by May 15.

“As the crypto space matures, evolutionary approaches to system design will be the foundation for growth,” Zayn Kalyan, BlackChain’s chief technology officer, said in the release. “Prometheus will enable BlackChain to deliver a cutting-edge product in our P2P Lending Platform.”

Prometheus is a browser-based technology developed by Blockseer, a company that DMG acquired earlier this year. Prometheus can be used on web browsers such as Google Chrome and Firefox, and it allows users to connect on the blockchain through those providers.

“Prometheus represents the next generation in blockchain technology, whose simplified, browser-based platform is opening up whole new markets in the cryptocurrency space,” Daniel Reitzik, CEO and director of DMG, said in the release.

BlackChain Solutions is relatively new to the blockchain space, having changed its name from BlackIce Enterprise Risk Management to BlackChain Solutions in December 2017. Following its name and ticker symbol change, shares of the company spiked from $0.07 on December 15 to $0.24 by December 29. Since then, BlackChain’s share price has dipped and was at $0.10 as of 1:55 p.m. EST on Thursday.

DMG officially went public this year on the TSX Venture Exchange. The company closed its first trading day on February 15 at $1.79 per share, but its share price has declined since the IPO. As of market close on Thursday, shares of DMG were at $0.59.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.