Mumbai: Blockchain ecosystem and cryptocurrency infrastructure platform Binance has signed a MoU to build a comprehensive partnership with SM Brand Marketing (SMBM), a subsidiary of a South Korean entertainment company SM Entertainment.

As part of the comprehensive partnership, Binance and SMBM will establish a global Play-to-Create (P2C) ecosystem. The partnership will begin with cooperation in the NFT sector and the creation of a joint eco-fund.

Conceptualised by Soo-Man Lee, the music executive of SM, P2C allows users to reproduce content using IP. "By using the tools and IP provided within the e-commerce and metaverse platforms, users can recreate content and products in the forms of games, music, dance, and goods," said the statement.

Within the P2C ecosystem, these contents and products can be converted into NFTs, allowing users to earn profits while also gaining recognition for their originality. The P2C ecosystem is a step forward from the existing Play-to-Earn (P2E) model, it added.

“Binance is happy to be working with SMBM to advance the current P2E ecosystem into a P2C ecosystem," said Binance NFT global head Helen Hai. "We would like to provide SMBM with the robust technology that can support the numerous Kpop global fans who enjoy recreating content based on their favorite Korean celebrities and want to earn passive income through their hobbies.”

With the strategic partnership, Binance and SMBM will collaborate to create an ecosystem where global creators can easily participate in recreation using IP and profit from their original content and projects in a transparent manner. The P2C ecosystem created through recreation will also enhance the creative culture within the K-pop industry. Fans, artists, and companies are brought together to join forces on these e-commerce and metaverse platforms, the statement said.

Binance and SMBM will be working jointly on the blockchain mainnet, NFT, and eco-fund to establish the P2C ecosystem. Binance will also provide the technology infrastructure for the overall blockchain and NFT ecosystem. Meanwhile, SMBM will provide the vast IPs managed by SM, including EXO, Red Velvet, NCT, aespa, and more, and support with content planning and platform construction, it added.

“By combining together SM’s production capabilities, SMBM’s e-commerce platform capabilities, and Binance’s technology infrastructure, we expect this comprehensive partnership will bring great innovation in the establishment of the P2C ecosystem and expansion of businesses in the blockchain industry," stated SMBM CEO Sung-su Lee. "It is also an opportunity for fans to build a new participatory creation culture through recreation and to gain economic benefits by being on the blockchain.”