A Chinese fintech company has launched a global investment consortium that will create a digital bank.
Cao Tong, president of Hande Financial Technology Holdings Co., Ltd. (HDFH) in Shenzhen, made the announcement at the China International Import Expo (CIIE) event in Shanghai.
In a speech on “Global Investment Opportunities for Chinese Digital Banks”, Tong said:
“Based on the accumulation of investor experience in the financial sector, the fund intends to invest and create a major digital bank. The plan is to build a global blockchain for digital banks. The first step is to invest and bring digital technology into a bank. The second step is to build a global digital banking consortium, with the digital bank as the main hub. “
Other stakeholders in the project are Yillion Bank and Zhongguancun Private Equity & Venture Capital Association (ZVCA). The fund will be worth about $ 1 billion, with a six-year investment phase and a two-year exit phase.
Digital banking blockchain consortium
The HDFH representative explained:
“The fund empowers targets through investments in fintech transformation. At the same time, it is building a digital banking blockchain consortium, generating value for the participating banks. ”
Yillion Bank, for example, is one of four banks operating on the Internet in China. Recently. the bank has received government approval to launch loans online.
Last month, China’s president urged the country to accelerate the adoption of blockchain technology to revolutionize financial systems.
Rumors have also circulated that the Central Bank of China is preparing to launch its own digital currency, the e-yuan. The representatives of the institution officially declared that the project is still in the research phase and that a launch date has not been set.