Tencent to Open Blockchain-Based Virtual Bank After Securing Hong Kong License

Chinese internet tycoon Tencent is set to build a blockchain-based virtual bank after the Hong Kong Securities and Futures Commission (SFC) granted a new license.  

Talking at the World Blockchain Summit in Wuzhen, China, on November 8, Tencent blockchain chief Yige Cai stated the firm’s virtual bank got the SFC’s green-light. Pushing ahead, the organization will establish a team to help the blockchain-based banking platform, as per Chinese media site Sina Finance.

“Hong Kong’s new regulations and supervision on digital assets transactions validates the importance of blockchain technology and digital assets, which is good news for the whole industry,” Cai said in his talk at the summit.

The SFC has given virtual bank licenses to 12 businesses so far. On the rundown is Infinium Limited, a joint venture between Tencent, Industrial and Commerce Bank of China (ICBC), and additional two Hong Kong-based institutional investors.

Tencent rebranded Infinium to Fusion Bank in July after it got the permit in May.

Cai didn’t reveal further insights concerning the virtual bank, while underscoring Tencent’s current blockchain ventures, including the offering of a supply chain financing for worldwide fast-food chain McDonald’s, as per the report.

As indicated by another report, Cai is presently leading the consortium blockchain group out of the three blockchain development teams in Tencent. The other two are in charge of blockchain framework and its blockchain-based cloud administrations, respectively.

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

The SFC published insights concerning its new licensing framework to regulate virtual asset transactions on November 6, making a comparable system to the one managing securities brokers.