Shineco Unveils World's First On-Chain Cell Asset Tokenization Platform; Strategic Acquisition Expands Global Blockchain-Biotech Network

Rhea-AI Summary

Shineco (NASDAQ: SISI) has announced a groundbreaking partnership with Plus Me Limited to launch the world's first blockchain-based cell asset tokenization platform. The initiative includes the creation of "Cell Infusion Redemption Tokens" on the Ethereum mainnet, enabling digital custody and trading of biological cellular assets.

The company has also acquired a 51% controlling stake in Xi'an Dong'ao Health Management Co., Ltd., strengthening its global storage and infusion network. This strategic acquisition, combined with its existing Singapore-based Infiniclone operations, establishes a comprehensive infrastructure for token redemption and asset settlement.

The platform will utilize ERC-1400/ERC-20 compliant security tokens, with smart contracts ensuring asset ownership rights and regulatory compliance through non-fungible digital identifiers (NFDIs). The ecosystem aims to transform traditional biotech marketing while addressing industry challenges such as high costs and illiquid asset pools.

Positive

• First-mover advantage in blockchain-based cell asset tokenization
• Strategic acquisition of 51% stake in Xi'an Dong'ao Health Management strengthens infrastructure
• Creation of liquid, tradable digital instruments from biological assets
• Development of global storage and infusion network through strategic acquisitions
• Implementation of ERC-1400/ERC-20 compliant security tokens enhances regulatory compliance

Negative

• Complex integration challenges between blockchain and biological asset management
• Regulatory uncertainty in cross-jurisdictional tokenized biological assets
• Potential technological risks associated with smart contract implementation

Insights

Blockchain-Biotech Integration Expert

Shineco combines blockchain tokenization with stem cell therapy, creating a novel business model through strategic acquisition and partnerships.

Shineco has pioneered a groundbreaking convergence of blockchain technology with biotech by establishing the world's first on-chain tokenization platform for cellular assets. This represents a fundamental transformation of their business model, transitioning from a traditional biotech service provider to an infrastructure layer for a decentralized cell economy.

The partnership with Plus Me Limited introduces several technical innovations with practical applications. The implementation of non-fungible digital identifiers (NFDIs) on Ethereum's mainnet creates immutable proof of cellular asset ownership and provenance, addressing a critical pain point in the industry where authenticity verification has historically been challenging. The ERC-1400/ERC-20 compliant security tokens introduce a novel liquidity mechanism for previously illiquid biological assets.

The strategic acquisition of a 51% controlling stake in Xi'an Dong'ao Health Management demonstrates execution capability beyond conceptual planning. This acquisition, combined with their previously acquired Singapore firm Infiniclone, establishes a critical global network that bridges the gap between digital tokens and physical cellular assets - solving the 'last mile' problem that has plagued many real-world asset (RWA) tokenization projects.

The business model innovation centers on transforming cellular assets into programmable financial instruments while maintaining biological integrity. The token burning mechanism upon redemption creates engineered scarcity that could potentially drive token value appreciation. The open ecosystem approach, where Shineco provides physical infrastructure while Plus Me delivers the tokenization layer, creates network effects that could scale more rapidly than a closed system.

This initiative reflects broader market trends where RWA tokenization is gaining institutional adoption, though regulatory frameworks remain inconsistent across jurisdictions. The inclusion of governance rights through future DAO voting indicates an evolving business structure that may decentralize certain decision-making processes while maintaining corporate control of critical infrastructure.

BEIJING, Aug. 20, 2025 /PRNewswire/ -- Shineco Inc. ("Shineco" or the "Company"; NASDAQ: SISI), a leading innovator in induced pluripotent stem cell (iPSC) technology, today announced the execution of a "Cellular Asset On-Chaining and Marketing Ecosystem Cooperation Agreement" with blockchain infrastructure provider Plus Me Limited. This partnership enables blockchain-based tokenization of biological cellular assets, facilitating seamless global transfers and auditable standardized custody, creating a novel 'Asset On-Chaining + Application Scenarios' model in cell therapy. The collaboration will redefine the global biological cell industry's commercial architecture.

Under the agreement, Plus Me will deploy full lifecycle digital custody of Shineco's compliant mesenchymal stem cells (MSCs) on the Ethereum mainnet. Smart contracts will immutably secure asset ownership rights, issuing unique non-fungible digital identifiers (NFDIs) for each cellular asset to ensure traceability and compliance. Verifiable uniqueness and regulatory compliance are cryptographically enforced through on-chain hashing.

Plus Me will issue ERC-1400/ERC-20 compliant security tokens, branded as "Cell Infusion Redemption Tokens." These utility tokens can be redeemed at Shineco-affiliated Cell Therapy Centers, with Tokens are programmatically burned upon redemption, enforcing scarcity and aligning long-term value for stakeholders. This RWA (Real-World Asset) tokenization framework addresses critical industry pain points: high user costs, unverifiable product provenance, and illiquid asset pools – converting biological assets into tradable digital instruments.

To bolster the initiative, Shineco has secured a controlling 51% stake in Xi'an Dong'ao Health Management Co., Ltd., a specialist in cryogenic cell storage and clinical applications, provides the off-chain infrastructure critical to token redemption, as of August 18, 2025. This strategic buyout operationalizes the tokenization initiative, providing off-chain infrastructure for token redemption. Combined with previously acquired Singapore firm Infiniclone, Shineco now controls a global storage & infusion network ensuring on-chain<>off-chain asset settlement.

The parties will co-build an open-cell industry ecosystem: Plus Me provides tokenization SaaS to third parties, while Shineco opens its physical custody network. Shineco maintains off-chain biological QA, with Plus Me ensuring on-chain regulatory compliance – creating cross-jurisdictional synergy with entities like Singapore's ACTRIS. This tokenized ecosystem transforms Shineco from a sole service provider into a global infrastructure provider for the cell economy, positioning the ecosystem for rapid revenue scalability.

Shineco's asset tokenization protocol aligns with the industry's shift from clinical trials to commercial scalability. "This marks the birth of a decentralized biotech economy—where every cell becomes a liquid, programmable asset, unlocking unprecedented value for medicine and investors alike," said Jennifer Zhan, CEO of Shineco. "Token holders gain governance rights, including future DAO voting to enhance global ecosystem development in cell therapy—fundamentally transforming traditional marketing paradigms."

About Plus Me Limited

Plus Me provides enterprise-grade blockchain middleware, offering end-to-end solutions for digital asset compliance, tokenomics architecture, and cross-border liquidity deployment. The firm architects Web3 economic models with global exchange partnerships.

About Xi'an Dong'ao Health Management Co., Ltd.

Xi'an Dong'ao Health provides GMP-compliant biostorage and clinical cell applications, delivering integrated health management via "Prevention-Intervention-Maintenance" protocols.

About Shineco, Inc.

Shineco, Inc. ("Shineco" or the "Company") aims to "focus on healthy living and improve the quality of life" by providing safe, efficient and high-quality health and medical products and services to society. The Company's core business encompasses induced pluripotent stem cell (iPSC) technology platforms and extracellular vesicle-derived products. For more information about Shineco, please visit www.biosisi.com/.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by words such as "may," "will," "should," "could," "intend," "expect," "plan," "budget," "anticipate," "believe," "estimate," "forecast," "potential," "continue," "evaluate" or similar words. Forward-looking statements should not be relied upon as they are neither historical facts nor guarantees of future performance. Rather, they are based solely on our current beliefs, expectations and assumptions about future business, future plans and strategies, forecasts, expected events and trends, economics, and other future conditions. Examples of forward-looking statements include, our innovation and market position in our products and services, our competitive advantages, and our expectation that the 5-minute cardiac test will be one of the leading products in this field to meet the need for test results immediately upon intake. Please do not rely on any forward-looking statements. Actual results may differ materially from those indicated in historical results or forward-looking statements due to various factors, including, but not limited to, the Company's ability to raise additional capital, its ability to maintain and grow its business, the variability of its results of operations, its ability to maintain and enhance its brand, its ability to develop and introduce new products and services, its ability to obtain all necessary regulatory approvals in the jurisdictions in which it intends to market and sell its products, companies to be acquired, successful integration of technology and assets into its portfolio of products and services, marketing and other business development initiatives, industry competition, general government regulations, economic conditions, impact of the COVID-19 pandemic, reliance on key personnel, attracting, hiring and retaining personnel with the technical skills and experience required to meet customer requirements and protecting its intellectual property. Shineco encourages you to review these and other factors that may affect its future performance in its filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based only on information currently available to us and are made only as of the date of this press release, and Shineco undertakes no obligation to update any forward-looking statements, except as required by applicable rules and regulations.

For media inquiries or partnership opportunities, contact:

Shineco, Inc.
secretary@shineco.tech 
Mobile: +86-010-68130220

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SOURCE Shineco,Inc.

FAQ

What is Shineco's new blockchain-based cell asset tokenization platform?

It's a pioneering system that enables the tokenization of biological cellular assets on the Ethereum mainnet, featuring Cell Infusion Redemption Tokens and smart contracts for asset ownership and tracking.

What company did Shineco (SISI) acquire in August 2025?

Shineco acquired a 51% controlling stake in Xi'an Dong'ao Health Management Co., Ltd., a specialist in cryogenic cell storage and clinical applications.

How will Shineco's Cell Infusion Redemption Tokens work?

The tokens are ERC-1400/ERC-20 compliant security tokens that can be redeemed at Shineco-affiliated Cell Therapy Centers. They are burned upon redemption to maintain scarcity and stakeholder value.

What is the significance of Shineco's tokenization platform for the biotech industry?

The platform transforms biological assets into tradable digital instruments, addressing industry challenges like high costs and illiquid asset pools while creating a decentralized biotech economy.

How does Shineco ensure regulatory compliance in its tokenization platform?

The platform uses smart contracts and non-fungible digital identifiers (NFDIs) to ensure regulatory compliance and asset traceability, with Plus Me managing on-chain compliance and Shineco handling biological QA.