Major cryptocurrency exchange Binance announced on Monday a strategic partnership with Kpop label YG entertainment on a number of projects related to the blockchain industry.
Under the strategic alliance, the companies have signed a Memorandum of Understanding to work on several blockchain-related projects, including the development of Binance Smart Chain-based games, creating a metaverse, and building an NFT platform, amongst others.
The press release specifically called attention to their collaboration in the NFT space. Per the announcement, the crypto exchange will provide the NFT platform and technology infrastructure whereas YG will furnish NFT content and gaming assets.
The companies will potentially offer eco-friendly NFTs by using Binance NFT, an NFT marketplace and multichain platform which uses the Proof of Staked Authority (PoSA) network. Proof of Staked Authority (PoSA) network is a combination of Proof of Authority (PoA) and PoS consensus mechanism which is more energy-efficient, and sustainable than PoW networks.
Bo Kyung Hwang, Chief Executive Officer (CEO) at YG, said in the announcement:
“As a Kpop leader, we plan to steadily build an innovative and eco-friendly NFT ecosystem. Collaboration with Binance has provided an opportunity for YG to secure royalties and business opportunities for rare and valuable content. We also hope that it could further strengthen the bond between fans and artists.”
YG Entertainment is a popular South Korean multinational entertainment label that manages some of the most popular Kpop artists and groups, including BLACKPINK, BIG BANG, and WINNER.
The announcement came a few days after HYBE, a YG rival and the label behind the popular Kpop group BTS, revealed plans to move forward with their NFT campaign. The company had received backlash from fans in November last year after it announced its NFT venture in partnership with Dunamu, a South Korean fintech firm.