Riot Blockchain Inc (NASDAQ:RIOT) has acquired a 52% stake in Tess, a Toronto, Ontario-based firm that is engaged in developing a blockchain-based payment service for wholesale telecom carriers.

Financial terms of the deal were not disclosed.

Riot Blockchain, previously known as Bioptix, is engaged in making diagnostic machinery for the biotech industry. The company is now focusing on buying companies engaged in the development of the blockchain ecosystem.

TESS is focused on developing a payment system using a blockchain-based escrow service for wholesale telecom carriers. The TESS platform is designed to provide a flexible and transparent ledger that is recorded securely on a blockchain.

“Riot Blockchain is committed to building and supporting the blockchain ecosystem,” Riot Blockchain CEO Michael Beeghley said in a statement.

“The telecom payment platform of TESS is a prime example of how blockchain-based technologies can be leveraged to disrupt established industries. I believe that Riot Blockchain is poised to take advantage of this revolution in digital transactions as we see increasing adoption of blockchain protocols in our everyday lives,” Beeghley added.

What are blockchain protocols?

Blockchain protocols offer a secure way to store and relay information without the need for middlemen. It uses a decentralized and encrypted ledger that offers a secure, efficient, verifiable, and permanent way of storing records and other information.

Blockchain protocols are the backbone of numerous digital cryptocurrencies including Bitcoin, Ethereum and Litecoin. They have a wide range of potential applications including use in processing transactions, managing medical records, recording votes and proof of ownership across a far-reaching spectrum of applications.

Riot Blockchain stock

On Thursday, shares of Riot Blockchain Inc (NASDAQ:RIOT) closed up 1.55%. The stock has gained nearly 70% during the last 30 days.