In an effort to expand in the Asian region, interoperability protocol LayerZero has collaborated with Layer 1 blockchain Conflux. This partnership is focused on the development of blockchain-based SIM cards (BSIM), which is a project being worked on jointly by Conflux and China Telecom.

BSIM will give users the power to transfer assets and messages across various blockchain networks using the LayerZero interoperability protocol. In early February, Conflux introduced BSIM with China Telecom.

One of the key features is improved security aspects that can protect users from potential malware threats. The built-in security of the blockchain used in BSIM adds an important additional layer of protection. Additionally, data secured in BSIM can be stored across different blockchains, increasing the level of security and making the phone a secure omnichain wallet. This capability will allow users to participate in a variety of domains, including DeFi, NFTs, and the emerging gaming industry.

Based on an official statement, this project will go through a trial phase in Hong Kong before being officially launched in China. This SIM card provides users with a secure way to store their private keys on mobile devices.

However, while the BSIM pilot program was in the waiting stage for launch, the number of Conflux users experienced a significant decline. Data from ConfluxScan shows that since April, the number of daily transactions has fallen to around 20,000, after previously reaching more than 40,000 in the first quarter of 2023.

Bryan Pellegrino, co-founder and CEO of LayerZero Labs, emphasized the significance of this collaboration in expanding their global coverage, especially in the APAC region. He stated that this integration will bring an international omnichain experience to a large audience.

“[…] the integration of our capabilities into BSIM technology with Conflux is a critical part of bringing the best-in-class omnichain experience we provide to the larger market,” said Bryan Pellegrino.

After establishing a strategic partnership with Google Cloud in September, LayerZero is now focused on expanding in the Chinese market. As LayerZero looks to expand in Asia, the BSIM project plans to capitalize on China Telecom's large user base, with 390 million users.