NextPlay Technologies Enters into Agreement to Acquire Crypto Technology from Token IQ to Enhance Fintech and ICO Portal Offerings
NextPlay Technologies, Inc. (Nasdaq: NXTP), a digital business ecosystem for digital advertisers, consumers, video gamers and travelers, has entered into a definitive agreement to acquire 100% of the assets of Token IQ, a leading innovator in digital asset management with its smart compliant token technology. Token IQ has many unique capabilities, but its greatest attributes are its ability to afford cryptocurrency owners a solution to replace their assets should they lose access to, or control of, their assets and its handling of “Know Your Customer” (KYC) issues — solving many key regulatory requirements. NextPlay will not only look to license the IP, but also plans to integrate the service into its wholly owned Bank — NextBank International to better serve its cryptocurrency customers.
Mark Vange, CTO of NextPlay and founder and CEO of Token IQ, stated, “Token IQ was built upon the early recognition that many digital assets may in the future be treated as securities. I’m excited that we can now make Token IQ part of NextPlay, given the many synergies that have developed around digital asset management across NextPlay’s ecosystem.”
One of the primary issues associated with crypto investing is the existential custody risk associated with the loss of passwords or wallet seeds, resulting in the inability to access assets. A critical function of Token IQ is the ability to allow issuers to manage this risk across public distributed ledgers — a key solution needed by any cryptocurrency owner, and a technology that we anticipate will become a cornerstone for all of our NextBank and Longroot coin offerings. This patent-pending technology also allows issuers to control the flow of tokens. The Token IQ technology can be invaluable in the enforcement of “Know Your Customer” (KYC) and other regulatory requirements which is a sensitive area that regulators around the world are increasingly focused on. The platform also supports vesting, lockups and asset freezing, which can enhance market making and liquidity while also reducing risks around custodianship, inheritance, and other legal circumstances related to proper asset disposition. We plan to pursue patents for this proprietary technology in key markets around the world.
The Token IQ foundational IP is designed to reconcile legal and regulatory requirements around digital assets, including KYC, Anti-money laundering (AML) and shareholder rights enforcement, all common pain points within the crypto markets today. It has been designed to do so across a distributed ledger, including Ethereum and Stellar.
According to NextPlay co-Chairman, J. Todd Bonner: “We see Token IQ technology becoming core to all our fintech-related activities, from Longroot’s cryptocurrency portal and HotPlay’s in-game tokens, to powering our NextBank fintech and planned NextTrip medical tourism offerings. We also expect the Token IQ acquisition to bring valuable technology and software development talent which is expected to support rapid integration with our platform and those of our partners, as well as further IP development.”