Explains Potential Opportunities With Sysorex Government Services
Herndon, VA, April 22, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Sysorex (OTCQB: SYSX or the Company), following its reverse triangular merger with TTM Digital Assets & Technologies, Inc. (TTM), a data center owner and operator and the largest U.S.-based, publicly traded Ethereum mining and blockchain technology company, and now the principal operating business of Sysorex, announced potential strategies pertaining to the Ethereum blockchain and distributed ledger technology (DLT) in connection with the Company’s wholly-owned subsidiary, Sysorex Government Services, Inc. (SGS).
Following its acquisition of more than 80% of the total issued and outstanding common stock of Sysorex, by design, TTM intends to support SGS, which has historically provided secure wireless networking and cybersecurity products to the U.S. Government. SGS plans to pursue government contracts implementing blockchain technology for the improvement of U.S. Government systems platforms utilized by Government agencies that are currently contract partners of SGS, and SGS is also considering blockchain opportunities within the state, local and education segments (SLED).
“We’ve been following closely the systemic approach of the World Economic Forum as it relates to trust in the governance of blockchain, and with the interests of the U.S. Government agencies we serve at the top-of-mind, we are exploring revolutionary ways to incorporate this technology across a variety of important sectors ranging from food safety to citizen engagement,” said Zaman Khan, President of SGS and a member of Sysorex’s Board of Directors. “In particular, with the deep understanding of Ethereum and the vast Ethereum blockchain experience that TTM and its management have brought to Sysorex, we are working to advance smart contracts on the Ethereum blockchain, which might be programmed, for instance, to automatically disperse funds from buyer to seller upon receipt of goods or services.”
Mr. Khan continued, “Grant opportunities have started to be introduced through the U.S. Government’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs and we have already seen the U.S. Air Force award a grant similar in form to an SBIR to Constellation Network, Inc., to utilize blockchain technology for big data cybersecurity. The U.S. Department of the Treasury’s Office of Financial Innovation and Transformation (FIT) has undertaken several projects including one in partnership with the National Science Foundation (NSF), which determined that blockchain technology could improve grant payment processing. The U.S. Department of Health and Human Services recently announced that Accelerate, the first blockchain-based program of the U.S. Government to get an ‘authority-to-operate,’ will save the Department $30 million over the next five years by reducing reporting burden, increasing the Department’s bulk purchasing power and improving its record keeping.
“SGS is an approved General Services Administration (GSA) contactor, and the GSA, which oversees more than $65 billion of procurement annually, has initiated several exploratory programs regarding application of blockchain technology for its Multiple Award Schedule (MAS), which is a long-term government-wide contract with commercial firms such as SGS. GSA’s MAS provides federal, state and local government buyers with access to more than 11 million products including those offered by SGS. Along with our advisors, we are exploring elements of the $2.25 trillion infrastructure plan where the Ethereum blockchain could vastly improve transactions and costs, including:
· Citizen and Government Transactions
· Business and Government Transactions
· Banking and Finance (Decentralized Finance “DeFi”)
· Securities Trading
· Patents and Trademarks
· Supply Chain
· Public Records, Titles and Registries
· Cloud Computing
“This is already taking place; for example, H.R. 6395, the National Defense Authorization Act (NDAA) for Fiscal Year 2021 includes a provision for reforming the Bank Secrecy Act (BSA) to make it clear that cryptocurrency and other digital assets are within the scope of the regulatory requirements of the BSA. This is relevant to the anti-money laundering and countering the finance of terrorism provisions [NDAA 6201(d), 6202(a)(3)]. These provisions are in line with guidance from the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The U.S. Congress reintroduced H.R. 1628, which amends federal securities laws to exempt certain virtual currencies, as well as update laws related to taxation of virtual currencies. The National Conference of State Legislators (NCSL) has recorded 25 states with pending legislation regarding cryptocurrency.
“Regulatory compliance and adaptation are underway. In February 2021, the Federal Reserve published ‘Preconditions for a general-purpose central bank digital currency,’ which detailed that the next step would be broadly engaging the public regarding the pros and cons of a U.S. central bank digital currency (CBDC). Potentially relevant to Ethereum in particular, the Federal Reserve Bank of Boston has announced that it will work with researchers from MIT’s Digital Currency Initiative (DCI) on a ‘multi-year collaboration’ to build and test an open-source central bank digital currency platform.”
Commenting on the opportunity set with SGS, Wayne Wasserberg, CEO of TTM, said, “Blockchain and cryptocurrency utilization by the U.S. Government will increase exponentially in the foreseeable future. Our acquisition of Sysorex and our collaborative efforts with SGS and in particular, three contracts that have been awarded to SGS, ‘GSA Federal Supply Schedule IT 70,’ ‘NASA SEWP V GWAC,’ and ‘NIH CIO-CS GWAC’, may provide an ideal platform to launch initiatives that may benefit from the security and flexibility of the Ethereum blockchain across the three branches of the U.S. Government and within the intelligence community and large government systems integrators.”
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Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Sysorex, Inc. and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Sysorex’s results of operations, Sysorex’s ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Sysorex’s technology. Other factors that are detailed in Sysorex’s periodic and current reports available for review at sec.gov. Furthermore, Sysorex operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Sysorex disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.