Hong Kong-based Genesis Block Ventures (GBV), a subsidiary of crypto over-the-counter (OTC) trading firm, has acquired OMG Network, a Layer-2 Ethereum scaling solution.
Announced on Thursday, the new owner of OMG Network is planning to accelerate the growth of the blockchain network and increase its adoption in ‘Asia and beyond’.
Moreover, GVB outlined its plans for introducing new services with its new subsidiary, especially in the hyped area of decentralized finance (DeFi).
“Following the acquisition, a number of integrations and partnerships are in the works, GBV and OMG will work closely together to leverage resources and explore new directions, such as building lending and trading platforms, to achieve DeFi’s massive adoption and growth potential,” the official announcement stated.
Scaling Ethereum Blockchain
Launched in 2017, OMG Network was previously known as OmiseGo. It launched its mainnet this year in June and is claiming that the network can handle thousands of transactions per second at a third of the cost of the same on Ethereum.
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OMG Network gained attention in the blockchain industry as Tether launched its USD-pegged stablecoin on this blockchain for saving time and cost.
GVB acquired the blockchain company from SYNQA, which made headlines after closing its $80 million Series C funding round in June.
The acquisition news additionally rattled the already bullish cryptocurrency trading market. The value of the OMG token spiked after the acquisition but has been corrected heavily since.
“The goals of the OMG Network will remain unchanged in the short term. Its native token OMG continues to be the token that powers the OMG Network,” the new OMG Network owner noted. “With the new changes, OMG Network will work on more partnerships to broaden the use cases.”