Traditional financial market asset management platform Seven Stars Cloud Group has entered a purchase agreement with GT Dollar for the sale of SSC common stock.
The transaction will see Seven Stars pick up a total of $40m. Singapore-based GT Dollar will receive 13 million common stock for $25m, and two promissory notes with a combined worth of $15m.
Seven Stars uses blockchain and AI technology to provide an infrastructure to support the digitisation of traditional markets such as commodities, currency and credit. The platform helps asset owners and holders to support their digital asset securitization and digital currency tokenization and trading.
GT Dollar is an e-commerce platform that lets consumers earn money and digital tokens through dining, travel, retail and leisure. The platform works with more than 80,000 merchants worldwide. Users can also play a GPS-based game, where they search for bees and their honey in exchange for the platform’s GT Dollar token.
Proceeds from the sale will be used to support the growth of the company, strategic acquisitions, and hiring members to its executive management. Seven Stars will also use to cover US headquarters costs, infrastructure costs and general working capital purposes.
Alongside the transaction, the two companies will form a partnership to bolster Seven Stars marketing efforts for its digital financial products by leveraging GT Dollar’s Asian sales network.
Earlier in the week, the Singapore FinTech Association and the FinTech Association of Japan formed a partnership to foster ‘greater FinTech cooperation’ between the two countries. The bodies aim to support joint projects and initiatives to nurture innovation and development.
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