October 28, 2020

Tencent will build a blockchain-based virtual bank

Tencent will build a blockchain-based virtual bank

Chinese Internet giant Tencent intends to open a blockchain-based virtual bank. During the World blockchain summit in Uzhen, leaderYegai Tsai’s blockchain department at Tencent said the company's virtual bank has received approval from the Hong Kong Securities and Futures Commission (SFC). As part of the next step, the company will assemble a team to support the blockchain-based banking platform, according to the Chinese media site Sina Finance.

Hong Kong New Rules and Supervision of Transactions withdigital assets confirm the importance of blockchain technology and digital assets, which is good news for the entire industry, Tsai said in a speech at the summit.

SFC has already issued licenses forvirtual banks to 12 business entities. This list includes Infinium Limited, a joint venture of Tencent, the Industrial and Commercial Bank of China (ICBC), and two other institutional investors from Hong Kong.

After obtaining a license, Tencent renamedInfinium at Fusion Bank. Tsai did not disclose information about the virtual bank, but only emphasized the existence of existing blockchain projects in Tencent, including the proposal to finance the supply chain for the global fast food restaurant McDonald’s.

Tsai currently heads the blockchain department of the consortium, which consists of three working groups. The other two are responsible for the blockchain infrastructure and its cloud services.

On Wednesday, the SFC published details about itsa new licensing system to regulate transactions with virtual assets, creating a structure similar to the one that controls securities brokers.