By Meg Flippin, Benzinga

QSTAK is the developer of the QSTAKCHAIN blockchain and post-quantum technologies used for securing decentralized applications, digital asset management and scalable blockchain transactions. Piranha Blockchain is SecureTech Innovations' subsidiary dedicated to tokenizing real-world assets, digital infrastructure and cybersecurity solutions. 

License Forever 

As part of the deal, SecureTech acquired a perpetual, exclusive, worldwide license to the QSTAK and QSTAKCHAIN – including its blockchain and its public block explorer, the QSTAK Wallet for iOS and Android as well as a browser extension – apart from the QSTAK exchange and decentralized-exchange materials and related token portals, domain names, brands and know-how. SecureTech said the license also covers future improvements QSTAK develops to the licensed technology, including post-quantum security features and the QSTAK exchange, both of which are in advanced stages of development.

Both companies have also agreed to create QSTAK Market, which is a newly formed Wyoming limited liability company. It is 57% owned by Piranha Blockchain, 38% by QSTAK and 5% by Craft Capital Management, LLC, which introduced the parties. SecureTech controls QSTAK Market and expects to consolidate its operating results within its financial statements.

SecureTech granted QSTAK Market a royalty-free license to use the QSTAK technologies in its business. QSTAK Market intends to build on the QSTAKCHAIN platform to tokenize real-world assets. Separately, SecureTech acquired a net 15% ownership interest in QSTAK for $4.5 million, paid in newly issued shares of SecureTech’s Series A Preferred Stock rather than cash. The company said that acquiring the 15% stake in QSTAK strengthens its balance sheet, aligns the company closely with the team behind the technology and gives it a powerful platform to scale the SecureTech enterprise faster. SecureTech expects to generate initial revenue in the current fiscal quarter. 

Piranha Blockchain Up And Operating 

“Today marks a defining moment for SecureTech and the day Piranha Blockchain becomes an operating business. With a perpetual, exclusive license to the QSTAK and QSTAKCHAIN technologies, we’re not starting from a blank slate. We’re starting with a live blockchain network, block explorer, and wallet, and a team already advancing post-quantum security,” said J. Scott Sitra, SecureTech’s President and CEO. “That head start puts us well ahead of building from scratch. We’re now positioned to commercialize today’s blockchain technologies and the next generation of quantum-resistant infrastructure, starting with the tokenization of real-world assets through QSTAK Market.”

SecureTech’s deal with QSTAK comes at a time when the tokenization of real-world assets on the blockchain has moved from an idea to a real market. In January, real-world assets on public blockchains stood at around $14 billion, and that increased 66% to about $23 billion by mid-March, led by the Treasury and money-market funds tokenizing gold and equities. That hasn’t been lost on companies like SecureTech, which underscores the reasoning behind the deal with QSTAK.  

Nor has it been lost on some financial firms that follow SecureTech, including The Vanderbilt Report, which said the deals with QSTAK not only give SecureTech another business line, but were built to protect common shareholders – all against a backdrop of growing demand for tokenization of real-world assets. Plus, it doesn’t hurt that QSTAK already has the infrastructure and services. As such, through the license deal, SecureTech gets the complete technology stack. Building something from scratch would take years, noted the financial firm. What’s more, The Vanderbilt Report wrote that since QSTAK's own team holds 38% of the venture, it is aligned with the success of the market, which it expects to be focused on real-world assets such as real estate and private credit.

“In eighteen months, SecureTech has gone from a deficit balance sheet to an operating company with $12.6 million of trailing revenue, its first profitable year on audited results, and a Q2 margin that shows what its installed base can earn,” wrote The Vanderbilt Report. “With the QSTAK license it has added a second business, live blockchain technology with a post-quantum roadmap, on terms that put most of the price behind performance and leave the common share count untouched.” The firm did warn that with any company there are risks, including concerns about liquidity, losses and the fact that the QSTAK Market doesn’t have revenue yet. To read the full report, click here. 

Featured image from Shutterstock.

This content was originally published on Benzinga. Read further disclosures here.

This post contains sponsored content and was created in collaboration with a third-party partner. Benzinga is a publisher and does not provide personalized investment advice or act as a broker or dealer. This content is for informational purposes only and is not intended to be investing advice or an offer or solicitation to buy or sell any security.