Binance, the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider, has announced the signing of a Memorandum of Understanding to build a strategic partnership with YG Entertainment Inc. (YG), one of South Korea’s leading multinational entertainment corporations.
As part of the strategic partnership, Binance and YG will cooperate on a range of blockchain projects, including collaborations in the NFT space. Binance will provide the NFT platform and technology infrastructure while YG will supply NFT content and gaming assets.
The two companies also have plans to develop Binance Smart Chain-based games, collaborate on building the Metaverse, and actively pursue various digital asset opportunities to develop unique experiences and services for fans.
It is expected that the partnership between Binance and YG will create positive synergies between the two firms. A number of world-renowned Kpop stars are managed by YG, including Big Bang, Blackpink, Winner, iKon, AKMU, and Treasure. YG has immense potential to develop digital assets, including NFTs, using their intellectual property (IP) rights in a wide range of business fields.
NFT, which stands for non-fungible token, is a one-of-a-kind digital token that allows artists to share their content in a unique way. The growth of NFT is paving the way for a change in the paradigm of the music and Kpop industry by serving more than just a consumption purpose for fans.
Kpop has been at the forefront of the Korean Wave, attracting millions of fans around the globe. It is expected that the MoU with Binance will allow YG to more actively extend its growth in the NFT market.
Binance NFT is a multichain platform that uses the PoSA (Proof of Staked Authority) network, a consensus agreement protocol that is more eco-friendly and energy-efficient than Bitcoin. Creating NFTs in an eco-friendly way is one of the considerations that Binance and YG emphasize during the collaboration.
Bo Kyung Hwang, Chief Executive Officer (CEO) at YG, said:
"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."
Helen Hai, Global Head of Binance NFT, said:
"YG is one of the most well-known global entertainment corporations in the world. Both Binance and YG will strive to further build their leadership in their respective fields. Now that the two companies have joined forces, we can expect to see a strong cooperative relationship being forged. We hope that this will support the development of the global blockchain ecosystem, and bring further mainstream adoption of new assets, such as NFTs, to a new user base."
"Binance will be working closely with YG to create an eco-friendly ecosystem for NFTs. YG is a global entertainment corporation with global influence, and we believe that it is important to promote the use of sustainable blockchain platforms."