- Constellation Network has entered into a strategic partnership with Liechtenstein-based crypto exchange LCX.
- Both partners aim to establish Constellation Network’s L_0 token standard, which will provide transparency, accountability and security for token creators and holders.
Constellation Network. Inc, a San Francisco-based company that provides a framework that enables anyone to build and conduct business on a blockchain, has entered into a long-term strategic partnership with LCX.com. The latter is a new type of global financial technology company that has received approval in Liechtenstein from the Liechtenstein Financial Market Authority for 8 blockchain-related registrations.
Together, the two partners aim to take the “next step” for the blockchain ecosystem to establish a new token standard that provides transparency, accountability and security for token creators and holders. While there are now umpteen blockchain protocols that offer a token standard, such as ERC20, to generate new tokens, like Ethereum, there is a lack of regulatory compliance for these standards, according to the Constellation Network (DAG) team.
This is exactly what both partners are looking to create by leveraging Constellation Network’s L_0 token standard. Under the partnership, LCX will, among other things, support the listing of L_0-based tokens; use Constellation’s Hypergraph Transfer Protocol (HGTP) to bring trading and transaction transparency to the centralized exchange; and provide legal support and a legal framework package for additional L_0 tokens and companies.
Using Constellation’s HGTP, LCX aims to build a state channel (L_0 business) that validates trade data, bringing many of the benefits of DeFi to a centralized exchange. Constellation’s L_0 state channel token standard lets companies define the rules of their business model while tapping into Constellation’s network, which is powered by rewards. DAG is the native cryptocurrency running on the Constellation network.
Monty Metzger, CEO and founder of LCX.com said of the partnership:
Crypto is all about scale. Constellation has built the infrastructure to scale fast and build a profitable network for all stakeholders involved. Now LCX users will become stakeholders of the Constellation Network as well and will enjoy its benefits.
Benjamin Jorgensen, Co-Founder and CEO of Constellation Network:
In order for our L_0 token standard to compete against the other token standard in the crypto industry, we need regulatory compliant and trustworthy centralized exchanges like LCX. Partnering with LCX paves a path for success for anyone building on Constellation’s ecosystem. This will give projects that build on Constellation and list on our DeFi Platform Lattice, assurance that their token has a path to being freely traded and supported from centralized exchanges like LCX.