ZK International (NASDAQ:ZKIN) is seeing shares of ZKIN stock soar higher on Wednesday after announcing its blockchain plans.

Source: Marko Aliaksandr/ShutterStock.com

Here’s what investors need to know about ZK International’s push into blockchain.

1. The company is planning to take a dive into blockchain through its wholly-owned subsidiary, xSigma Corporation.
2. This has xSigma launching a Decentralized Finance (DeFi) protocol, which makes ZKIN one of the first publically-traded companies to enter the space.
3. DeFi is a system of allowing users to take part in blockchain markets and other alternative markets made on blockchain.
4. This has xSigma launching its own stablecoin exchange as well.
5. ZK International notes that this will offer “air farming terms for liquidity providers and an intuitive user interface for users.”
6. It also claims the exchange will have an “intuitive interface, and easy-to-use platform, offering decentralized exchange for stablecoins.”

1. The launch of a stablecoin exchange and push into the DeFi market comes two years after the creation of xSigma.
2. The subsidiary was created by ZK International as a research and development lab.
3. Its goal was to “explore new opportunities in smart contracts, supply chain management and other blockchain-based solutions.”
4. ZK International push into blockchain is strange compared to its normal offerings.
5. The company’s main business is designing, engineering, manufacturing, and supplying “patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies.”

ZKIN stock was up 36.9% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.