Paris Saint-Germain (PSG) partners with Chiliz (CHZ) to become the first sports club acting as a blockchain validator, marking a significant milestone in web3 sports innovation.
In a significant development illustrating the increasing integration of blockchain technology within the sports sector, Paris Saint-Germain (PSG) has declared a deepening collaboration with Chiliz (CHZ), the FinTech provider based in Malta.
Renowned as one of the world’s premier football clubs, PSG is poised to become the inaugural sports club to serve as an official blockchain validator on the Chiliz Chain, marking a noteworthy achievement for both entities.
Chiliz $1 Billion SportFi Ecosystem Draws PSG's Interest
As per the announcement made on Thursday, the latest partnership will see PSG assume a vital role in upholding the security, precision, and dependability of the Chiliz chain. Validators play a crucial part in preserving the integrity and functionality of a blockchain network.
Since forging their partnership with Chiliz in 2018, resulting in the introduction of the PSG Fan Token – the club’s endorsed digital asset – PSG has progressively immersed itself in embracing Web3 in sports. The club’s dedication to Web3 innovation is further underscored by the appointment of Pär Helgosson as the Head of Web3, a role exclusively focused on propelling the club's digital evolution.
According to the announcement, the decision to opt for Chiliz as the platform for this endeavor is attributed to its robust $1 billion SportFi ecosystem, which attracts a sizable community of crypto-native sports enthusiasts.
Chiliz’s infrastructure and backing for decentralized applications (dApps) have positioned it as a favored platform for more than 50 web3 projects, demonstrating its ability to draw substantial Web3 products and services.
Integration of Web3 in Sports
To bolster the ongoing expansion of the Chiliz Chain, PSG has committed to utilizing 100% of its accumulated revenue as a validator to conduct regular repurchases of the PSG Fan Token from the public marketplace.
According to the announcement, these automated repurchases, executed via smart contracts or decentralized exchanges (DEXs) on the Chiliz chain, are anticipated to fortify the club’s digital economy and routinely replenish its Fan Token reserves.
In addition to its role as a validator, PSG and Chiliz are set to jointly organize their inaugural blockchain hackathon at the Parc Des Princes stadium in Paris, France, during the summer of 2024.
Alex Dreyfus, CEO of Chiliz and Socios.com, expressed his enthusiasm regarding PSG's involvement as an official validator, remarking:
This progression signifies a significant milestone in the adoption of web3 by fans, clubs, and leagues. PSG’s active participation as an official validator is poised to propel our SportFi ecosystem into new realms, further solidifying our enduring partnership with the club.
Pär Helgosson, Head of Web3 at Paris Saint-Germain, underscored the club’s dedication to shaping the future of web3 sports, stating:
Our commitment lies in constructing a more empowered and sustainable web3 ecosystem, leveraging the sturdy groundwork of our existing collaboration with Socios and Chiliz. PSG remains steadfast in fostering innovation, and the club will persist in cultivating opportunities with other collaborators in this domain.
CHZ Surges to $1.13 Billion Market Cap
Following Thursday's announcement, the native Chiliz token CHZ, initially launched as an Ethereum-based ERC-20 token, has witnessed a substantial surge in its trading value, reaching $0.1283 and achieving a market capitalization of $1.13 billion.
Since the outset of Thursday, the token has sustained its upward trajectory, experiencing a 9% price hike. This upswing contributes to the token's consistent positive performance over more extended periods, aligning with the broader market trend.
Over the past seven and fourteen days, CHZ has demonstrated significant price gains of 19.5% and 25%, respectively. Moreover, within the last thirty days, it has witnessed a remarkable surge of 32%, effectively bridging the year-to-date deficit. Despite a marginal 6% decline over this period, the recent surge has substantially offset the overall loss.