One of China’s leading insurers has backed the establishment of two crypto investment funds in Hong Kong. The commercial move comes against the backdrop of the region’s ambitions to become a hub for digital assets and despite the negative regulatory attitude towards the market on the continent.
Chinese Insurance Giant Enters Crypto Through Hong Kong Subsidiary
A Hong Kong-based company, part of the China Pacific Insurance Company (CPIC) group, has joined forces with Waterdrip Capital and has established two investment funds in the special administrative region that will focus on the industry built around blockchain technologies. and crypto assets.
CPIC is the third-largest state-owned insurance company in China, Chinese crypto journalist and blogger Colin Wu, also known by the Twitter handle ‘Wu Blockchain,’ noted in a post Monday, citing a report by Chinese news outlet 36kr.com.
China’s third-largest state-owned insurance institution, Pacific Insurance Investment Management Hong Kong Branch and Waterdrop Capital, have launched a blockchain-compliant venture capital fund and a POS token income enhancement fund in Hong Kong. https://t.co/CctT9av4W3
— Wu Blockchain (@WuBlockchain) April 3, 2023
Waterdrip is an international investment institution that supports blockchain-oriented projects and crypto startups like Polkadot, among others. It was founded in 2017 by “the most forward-thinking Chinese blockchain pioneers,” according to its website.
The companies launched two funds for investments in the sector: a venture capital fund called Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II, also known as ‘POS Token Income Enhancement Fund’.
The former will invest in the early stages of new projects focused on blockchain infrastructure development, decentralized finance applications, Web3, metaverse, and non-fungible token (NFT) applications, while the latter will mainly have proof-based digital assets. . participation consensus mechanism (POS).
The main objective behind the initiative is to provide investors with more diversified and innovative investment options. The funds’ target group will include institutional investors such as corporations and family offices, as well as high net worth individual investors.
China’s central government has been cracking down on cryptocurrency-related activities in the People’s Republic, but there have been signs that Hong Kong’s plan to become a major hub for digital assets is backed by Beijing. a recent report by Bloomberg revealed that China’s state-owned banks have been opening their doors to cryptocurrency companies coming to the region.
Do you expect more Chinese state-owned companies to get involved in Hong Kong’s growing crypto market? Tell us in the comment section below.
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