ZK International (NASDAQ:ZKIN) is seeing shares of ZKIN stock soar higher on Wednesday after announcing its blockchain plans.
Here’s what investors need to know about ZK International’s push into blockchain.
- The company is planning to take a dive into blockchain through its wholly-owned subsidiary, xSigma Corporation.
- This has xSigma launching a Decentralized Finance (DeFi) protocol, which makes ZKIN one of the first publically-traded companies to enter the space.
- DeFi is a system of allowing users to take part in blockchain markets and other alternative markets made on blockchain.
- This has xSigma launching its own stablecoin exchange as well.
- ZK International notes that this will offer “air farming terms for liquidity providers and an intuitive user interface for users.”
- It also claims the exchange will have an “intuitive interface, and easy-to-use platform, offering decentralized exchange for stablecoins.”
- The launch of a stablecoin exchange and push into the DeFi market comes two years after the creation of xSigma.
- The subsidiary was created by ZK International as a research and development lab.
- Its goal was to “explore new opportunities in smart contracts, supply chain management and other blockchain-based solutions.”
- ZK International push into blockchain is strange compared to its normal offerings.
- 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.