Coinsilium Group Limited (LON:COIN) has said it is undertaking a strategic review of its business to capitalise on “substantial opportunities in the burgeoning decentralised finance (DeFi) and crypto finance sector” and realign itself to participate in its recently launched IOV joint venture in Singapore.
The crypto investment and advisory group noted that the global crypto finance market is showing “strong month-on-month growth”, with active collateral on DeFi platforms now over US$2.1bn.
READ: Coinsilium forms Singapore joint venture with IOV Labs
The group said it is currently working on several DeFi models with the aim of launching commercial solutions either independently or through its partner network. It has also begun income-generating staking operations using its crypto reserves as active collateral, utilising existing internal resources to accelerate new revenue generation.
Staking activities are expected to increase over the coming months, Coinsilium said, adding that it is also looking to develop further in-house expertise to expand its operational capabilities.
Meanwhile, as part of the review, the company said its investment holding company, Seedcoin Limited, has been redomiciled from the British Virgin Islands to Gibraltar in order to realise value from the firm “in the near term by way of a transaction, liquidity event or outright sale”.
Coinsilium said initial early-stage discussions are ongoing with “certain interested parties” and that in their view Seedcoin’s portfolio offered “materially greater value than is currently recognised by the market”.
The company said the review will be conducted over the coming months and will be followed by a repositioning of its operating model as well as renewed corporate branding and a website relaunch.
"We have been closely monitoring the growth of DeFi and crypto finance for some time and it is clear to us that the sector is still in its very early stages; with massive inflows of capital anticipated into these platforms and financial products over the next few years. We see the convergence of negative interest rates, the aftermath of economic crises, the emergence of central bank digital currencies and the overall political instability as a catalyst for institutional and individual investors' interest in crypto finance, given the significant returns achievable and the fluidity of these financial products”, Coinsilium chief executive Eddy Travia said in a statement.
“We, therefore, want Coinsilium to be ready to take full advantage of this inflow of funds and interest in this new wave of financial products and to create value for our shareholders by being an active builder and participant in this specific sector of the blockchain and cryptocurrency space. We believe that we have the right experience, jurisdiction (Gibraltar's reputable blockchain ecosystem), network and access to the most suitable technical and commercial partners, such as our joint venture partners IOV Labs, to execute this new strategy”, he added.
Coinsilium shares are currently valued at around 2.45p as of late-morning trading on the Aquis Exchange on Monday.
--Adds share price--