Buoyed by COVID-fuelled gaming demand and strong financial results in 2020, Animoca Brands has announced a strategic partnership with Binance Smart Chain, a leading blockchain platform backed by cryptocurrency exchange Binance.
The company is currently one of the world’s leading blockchain and cryptocurrency infrastructure providers that transacts around $2 billion per day and claims to carry out over 1.4 million transactions per second.
Binance set an all-time high of $30 billion for volume on Monday this week, roughly 38% higher than the exchange’s previous peak of $22 billion, which was set earlier this month.
In fact, trading volume across all crypto exchanges has been elevated since the start of the year alongside a meteoric rise in the price of leading cryptocurrency Bitcoin.
The two crypto pioneers said they are aiming to achieve meaningful adoption of blockchain technology and deploy tokenisation strategies for the broader entertainment industry, including its two fastest-growing niches: gaming and eSports.
The deal effectively allows Animoca Brands to expand its tokenisation of gaming assets by leveraging Binance Smart Chain as its “preferred” blockchain infrastructure for “selected blockchain projects”.
Animoca Brands chairman and co-founder Yat Siu said the deal is a timely addition to its partner list as the company stands on the “cusp of a significant shift in the fundamentals of gaming”.
As part of the collaboration, Binance Smart Chain will provide advisory services in the areas of product, market fit and blockchain technology, while Animoca Brands will bring additional virtual assets to Binance Smart Chain.
The two companies have also promised gaming fans they intend to explore innovative approaches and use cases for the tokenisation of virtual assets.
“Through a strategic partnership with Animoca Brands, we aim to bring in more mainstream users by onboarding more high-quality gaming applications on Binance Smart Chain as well as innovate the integration between blockchain technology and traditional gaming assets,” Binance vice president of mergers and acquisitions Ling Zhang said.
Sandbox launch and growth
The strategic partnership is not the first interaction between the two companies.
Last year, Binance acquired 4,012 LAND NFTs as part of Animoca Brands’ series of auctions for its The Sandbox project – a decentralised social multiplayer gaming platform.
The Sandbox is also a subsidiary of Animoca Brands that will serve as a portal for Binance to engage with its community through social gaming experiences.
In addition, The Sandbox completed a US$3 million sale of its main utility token SAND on Binance Launchpad indicating an emerging crypto working partnership between the two companies.
“We are incredibly excited to partner with the world’s most influential exchange and to deliver our projects on the Binance Smart Chain,” said Mr Siu.
“We deeply appreciate collaborating with partners who share our vision of gamer empowerment by enabling characteristics previously unavailable in games such as play-to-earn and property rights,” he added.