Three Chinese firms to set up $1B blockchain investment fund
November 20, 2019, 4:01AM EST
1 min read
Three firms in China have introduced a blockchain investment fund, that aims to have a size of $1 billion.
The fund, dubbed “Global Digital Bank Consortium Blockchain Investment Fund,” is launched by fintech firm HDFH, venture firm Zhongguancun Private Equity & Venture Capital Association (ZVCA) and Yillion Bank, according to an announcement Monday.
The size of the fund will be "around US$1 billion with a term consisting of a 6-year investment phase and 2-year exit phase,” said HDFH, which claims to be an "enabler of the digital transformation of banks and of consortium blockchain technology."
The fund will invest in digital banks and "proven" fintech infrastructure platforms worldwide. “The first step is to invest in and digitally transform a bank. The second step is to build a global digital bank consortium blockchain, with the digitally transformed bank as the main node," said Cao Tong, chairman of HDFH.
The fund is targeting startups in mainland China, Singapore and Australia, among other countries and regions, per the announcement.
Chinese firms seem to be rushing into blockchain ever since President Xi Jinping said China should commit to accelerating the development of the technology. However, a recent report showed that less than 10% of firms actually use blockchain in their operations, as against those who claim to do so.