February 22, 2024

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 Worldblockchain summit in Uzhen, headTencent's blockchain department Yige Tsai 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, Chinese media website Sina Finance reports.

New rules of Hong Kong 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 receiving the license, Tencent renamedInfinium at Fusion Bank. Tsai did not disclose information about the virtual bank, but only highlighted the presence of existing blockchain projects at Tencent, including a supply chain financing proposal for 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.