Business
CLPS Incorporation and Columbus Announce Joint Venture to Develop and Upgrade Blockchain-Based Digital Asset Solutions
HONG KONG, June 8, 2021 /PRNewswire/ --CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or "the Company"), today announced that it has formed a joint venture with
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[{"type":"text","content":"HONG KONG, June 8, 2021 /PRNewswire/ --CLPS Incorporation (Nasdaq: CLPS) (\"CLPS\" or \"the Company\"), today announced that it has formed a joint venture with Columbus Century Development Co., Pte. Ltd. (\"Columbus\"), a blockchain technology solutions provider. The joint venture aims to develop and upgrade blockchain-based digital asset solutions for financial institutions. Such digital asset solutions include custody, exchange, payment, and non-fungible token (NFT) distribution platforms, particularly in wealth management and various investment transactions, among others.\nOn June 4, 2021, CLPS, through its wholly owned subsidiary, Growth Ring Ltd., entered into a shareholder agreement with Columbus (the \"Agreement\"). Pursuant to the Agreement, both parties have agreed to establish a British Virgin Islands joint venture company (\"Joint Venture\") within 30 days after the signing, and will eventually plan to set up wholly owned subsidiaries in Hong Kong SAR and Hainan. Upon closing of the transaction, CLPS and Columbus will hold 55% and 45% of the Joint Venture's shares, respectively.\nThe rapid growth of digital assets in recent years has led to the increased demand for professional and compliant digital asset management platform among traditional banks and financial institutions, which can be leveraged for potential business opportunities under a stringent digital embedded supervision. Under the joint venture arrangement, Columbus' blockchain-based digital asset solutions will be deeply integrated into CLPS's big data and cloud computing technologies to accelerate the engagement of traditional banks and other financial institutions in the digital asset platform. With this strategy, it will significantly reduce the financial institutions' independent development and operational costs. \nFollowing the integration of the combined business, the upgraded solutions will be comprised of digital asset platforms suited for financial institutions such as the management and custody service platform, trading and settlement platform, exchange platform, smart contract deployment protocol and testing services, next generation decentralized and distributed services, and NFT distribution platform.\nMr. Chong Zhang, Technical Director of the Joint Venture, said: \"With the respective competitive advantages of CLPS and Columbus in financial...