Global digital banking consortium announced at Shanghai expo

Chinese fintech firm Hande Financial Technology Holdings (HDFH) has announced plans to form a $1 billion fund for six years’ worth of investment in blockchain technology.

At the recent China International Import Expo in Shanghai, the firm claimed that the fund will be used to invest in banking solutions for blockchain-based assets.

The first step will involve the transformation of an existing Chinese bank to serve the new fund.

To support the fund, three Chinese fintech and banking companies will be joining forces to form the “Global Digital Bank Consortium Blockchain Investment Fund”, which will provide expertise and infrastructure for fund applicants.

Banking consortium for digital assets

The new consortium, led by HDFH, also features Yillion Bank and the Zhongguancun Private Equity and Venture Capital Association (ZVCA).

HDFH is a large Chinese fintech firm with multiple holdings in the blockchain industry. The firm’s subsidiary, Shenzhen Jia Asset Management, became China’s first-ever fintech equity fund manager, and the firm has established two existing venture capital funds.

Yillion Bank is one of China’s leading internet banking providers, while ZVCA provides access to a pool of investors with over $300 billion in funds under management.

HDFH chairman Cao Tong delivered a keynote speech during the event entitled “Global Investment Opportunities for China’s Digital Banks”, where he discussed the shifting role of banking for digital assets.

Sharing HDFH’s plans for the consortium, Tong said:

“Based on the investors’ accumulation of experience in the fintech sector, the fund plans to invest in and create a leading digital bank, through which it will build a global digital bank consortium blockchain.”

The consortium has also indicated that it will explore investing in other digital banks across mainland China, Singapore, and even in Australia.

Blockchain not Bitcoin

In October, Chinese President Xi Jinping remarked that blockchain technology was vital for the future of the Chinese economy, however regulators in Beijing have also called for prudent regulation of the industry.

Chinese companies and investment funds seem to be investing heavily in blockchain technology while giving cryptocurrencies such as Bitcoin the cold shoulder.

As a result, crypto exchange companies, such as Binance, have been poised to scale-up their activities in China ahead of a blockchain technology boom.