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GEM Digital commits $50M to ParallelChain Lab for L1 protocol development

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 193 Views

As a proof-of-stake layer-1 protocol, ParallelChain intends to deliver an architecture that operates in confidentiality while allowing to validate transactions.

Digital asset investment firm GEM Digital Limited (GEM) has committed $50 million to finance ParallelChain Lab following the launch of its mainnet and native token listing, XPLL, in Q4 2022.

As a proof-of-stake (PoS) layer-1 protocol, ParallelChain aims to bridge the infrastructure divide between centralized fi(CeFi) and decentralized finance (DeFi). The soon-to-be-launched ParallelChain mainnet is open source and based on a PoS consensus mechanism dedicated to maintaining a fair distribution of power.

The permissioned ParallelChain Enterprise, on the other hand, will ensure the secrecy of transactions using a patented proof-of-immutability mechanism. The two platforms, together, intend to deliver an architecture that operates in confidentiality while allowing to validate transactions. Speaking about the innovation, ParallelChain CEO Ian Huang stated:

“We see this solution as the answer to enterprises’ privacy and compliance demands while simultaneously addressing the need for scalability across many public applications, namely DeFi.”

GEM’s $50 million investment in ParallelChain is planned to be redirected to market expansion, community development, research and development and funding of decentralized projects and decentralized app (DApp) developers.

Related: Sports metaverse company secures $200M funding

Showcasing the diverse interest of crypto investors, institutional crypto lending protocol Maple Finance announced its commitment of up to $300 million in secured debt financing to public and private Bitcoin (BTC) mining firms.

Mining firms from North America and Australia that meet the treasury management and power strategies standards are eligible to apply for the funding. Sidney Powell, CEO and co-founder of Maple Finance, highlighted the recent pullback from lenders, adding that:

“Miners play an essential role in growing the crypto ecosystem and local economies, and we are proud to extend a new financing vehicle to direct capital where it is needed the most.”

As Cointelegraph reported, Maple currently holds 50% of the institutional crypto lending market as measured by total loans outstanding.


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