Xunlei Partners with China Mobile to Develop Blockchain and IoT Applications
Under the agreement, both parties would jointly invest in the research and development of applications of blockchain and IoT technologies.
Xunlei Ltd. (Nasdaq: XNET), a cloud-based bandwidth acceleration technology company, announced today that the company has teamed up with China Mobile IoT Co. Ltd. to jointly develop IoT industry solutions by leveraging blockchain technology.
Under the agreement, both parties would invest in the research and development of innovative applications of blockchain and IoT technologies. Both companies also agreed to share market intelligence of the latest industry trend, provide traffic support, and strengthen product operations.
China Mobile IoT, a subsidiary of China Mobile, focuses on operating IoT networks, designing IoT chips, producing smart home applications and wearables, and developing and operating IoT platforms. The company builds a comprehensive architecture named "Cloud-Pipeline-Device."
"Xunlei is an innovative leader in blockchain technology and cloud computing, and China Mobile has built one of the world's largest core networks for IoT with over 500 million connections," said Qiao Hui, general manager of China Mobile IoT. "Together, we will bring unparalleled blockchain and IoT capabilities to optimize customer experience and drive technological innovation."
Although cryptocurrency prices have taken a big hit over the past few weeks, Lei Chen, CEO of Xunlei said he remained optimistic about the future of blockchain technology. The company has increased "investments in shared computing and blockchain" in the past quarter and would continue to expand its investment, he said. "We believe blockchain represents a technology capable of changing our lives, and we strive to develop it in a simple and cost-effective manner," said Chen.
Xunlei, which went public at $12 per share in mid-2014, had seen its shares slide considerably until a sudden run-up a year ago after the company announced plans to push into blockchain technology and cryptocurrency development.
Shares in Xunlei closed today at $4.83 per share, down 7 cents on the day.