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- UNICEF launches fund for startups; NEObank offers security tokens
The United Nations Children’s Fund (UNICEF) has announced the launch of a fund to back startups building real-world solutions with emerging technology to protect children on the internet.
According to an official announcement, the UNICEF Venture Fund is seeking firms to experiment with artificial intelligence (AI) and blockchain in its program countries. The solutions provided by the companies should have the “potential to create radical change for children.”
The fund is particularly concerned with practical solutions that can help young individuals spot misinformation while building media literacy. Successful firms will receive as much as US$100,000 in equity-free funding with UNICEF targeting early-stage startups with a working prototype.
Firms focusing on open-source licensing and practice are more likely to receive funding from UNICEF than closed-ended enterprises.
Top on the pile for UNICEF is the desire to leverage AI and Web3 solutions to combat misinformation, with the statement exploring potential applications. UNICEF is willing to fund platform-agnostic, interactive games that encourage fact-checking practices and novel watermarking solutions.
The second objective of the fund is to support firms collating large numbers of data for building safe AI models. Firms building data collection and management systems are more likely to receive funding, while others experimenting with solutions to stifle cognitive bias in the process will be preferred.
Firms with solutions that foster digital trust will likely come under the crosshairs of UNICEF, particularly those building around decentralized protocols for ownership and licensing. AI-based solutions monitoring online risks and DLT-backed Know Your Customer (KYC) tools will likely receive funding.
“We are actively seeking companies that push the boundaries with frontier technologies in innovative and scalable ways with global relevance,” UNICEF said.
UNICEF work with emerging technology
In recent years, UNICEF has had a long and storied history with emerging technologies, leaning on blockchain and digital assets to aid distressed children.
Aware of the potential for seismic change, the UN agency has invested over $400,000 in developing countries to trigger mainstream adoption of blockchain and Web3 technologies. The first cohort of the fund saw firms from Argentina, Sri Lanka, and Nepal receive a capital injection focusing on decentralized solutions.
In early 2024, UNICEF struck a deal with Blockchain For Impact (BFI) to improve public health for children in India, splurging over $2 million on the initiative.
NEObank begins offering security tokens to clients
As security tokens gain momentum, SBI Sumishin Net Bank (NEObank) has joined the trend with an offer of security tokens to its clients, which experts are terming a disruptive play in the ecosystem.
According to a report, NEObank will offer security tokens from Japanese-based multinational firm Mitsui & Co Digital Asset Management to its nearly eight million customers. The new arrangement will see NEObank dabble in security tokens for the first time but will lean on Mitsui (NASDAQ: SMFNF) for issuance.
Security tokens are digital representations of asset rights recorded on the blockchain, operating as investment contracts and subject to securities regulations.
Mitsui entered the market with a “direct-to-consumer” security token service in 2023, seeking to eliminate the reliance on brokers in the value chain. Dubbed Alterna, the service is opting for introducers rather than brokers in a valiant attempt to reach consumers, disrupting traditional processes in the financial system.
Under the new arrangement, NEObank will operate as introducers, but details of the operation remain sparse. While NEObank will offer the security tokens as investment opportunities, it is unclear if the bank will lean on its blockchain infrastructure or a third-party custody solution.
NEObank will handle anti-money laundering and Know Your Customer (KYC) checks, with experts hinting at providing a secondary market in addition to automated distribution of profits.
Barely weeks after Alterna went live, it struck a partnership with Sony Bank (NASDAQ: SONY) to operate as an introduction to its 1.9 million customers. Not content with dealing with financial institutions, Alterna teamed up with retail company J Front Retailing to reach a deeper pool of customers.
Alterna’s method has several upsides, such as saving a fortune in fees by eliminating brokers, custodians, fund managers, and other intermediaries. Besides saving fees, the move will eliminate custodial risk while improving transparency standards in the value chain for issuers and investors.
Security tokens in Japan are gathering steam following the regulatory clarity provided by authorities. Financial giant Daiwa Securities (NASDAQ: DSECF) underwrote $153 million in security tokens, partnering with Gincon in a first-of-its-kind proof of concept (PoC) on a public blockchain.
Daiwa will have to contend with several security token issuers in Japan, including Progmat and MUFG’s (NASDAQ: MUFG) issuing platform, which has received support from key ecosystem players. Globally, Taiwan and South Korea are hurtling toward full-scale adoption of security tokens with regulators issuing licenses to financial entities.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI .
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