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Writer's pictureFahad H

Tencent to Build Virtual Bank After Hong Kong Regulator Approves License


Chinese web large Tencent is ready to open a blockchain-based digital financial institution after the Hong Kong Securities and Futures Commission (SFC) accepted a brand new license.

Speaking on the World Blockchain Summit in Wuzhen, China on Friday, Tencent blockchain chief Yige Cai mentioned the corporate’s digital financial institution obtained the SFC’s green-light. Moving ahead, the corporate will assemble a staff to help the blockchain-based banking platform, in line with Chinese media website Sina Finance.

“Hong Kong’s new rules and supervision on digital property transactions validates the significance of blockchain expertise and digital property, which is sweet information for the entire business,” Cai mentioned in his speech on the summit. 

The SFC has granted digital financial institution licences to 12 entities up to now. On the record is Infinium Limited, a three way partnership between Tencent, Industrial and Commerce Bank of China (ICBC) and different two Hong Kong-based institutional traders.

Tencent renamed Infinium to Fusion Bank in July after it obtained the license in May. 

Cai didn’t disclose additional particulars in regards to the digital financial institution, whereas stressing Tencent’s current  blockchain tasks, together with the providing of a provide chain financing for international quick meals chain restaurant McDonald’s, in line with the report. 

According to a different report, Cai is at present main the consortium blockchain group out of the three blockchain growth teams in Tencent. The different two are chargeable for blockchain infrastructure and its blockchain-based cloud companies, respectively. 

Other corporations embody Alibaba’s fintech arm Ant Financial and SC Digital Solutions Limited, whose 65 % stake is owned by Standard & Chartered Bank.  

The SFC revealed particulars about its new licensing system to manage digital asset transactions on Wednesday, creating an analogous framework to the one overseeing securities brokers.


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