A Chinese-based cloud company, headed by a high-profile media mogul, has moved to acquire an ownership stake in a Delaware-based alternative trading system provider specializing in blockchain.
According to the SEC filing, Seven Starts Cloud Groups (SSC), publicly listed on NASDAQ, made a transaction on Dec. 20 to acquire 27 percent of the shares of the Delaware Board of Trade (DBOT), making SSC the largest shareholder in the company. DBOT launched in May 2017 to provide a blockchain-based crowdfunding platform compliant with new legislation in the state seeking to boost the use case.
For Seven Starts, the deal notably comes two months after Bruno Wu toke over the role of CEO at the company. What draws attention, however, is perhaps the high-profile status of Wu himself. He has gained large public attention in China through his media business the Sun Seven Star Entertainment, as well as his marriage with the Chinese TV personality Yang Lan.
According to the announcement, DBOT’s technology will be used to power the SSC’s blockchain-based NextGen X platform. It is said to be a solution that brings liquidity to trading ETF-backed digital assets for countries including the US, UK, Germany, China, Korea, Africa, Singapore, UAE and Japan.
Yet this is another instance of Chinese investors exploring opportunities overseas to tap into the business related to cryptocurrency and blockchain amidst a regulatory uncertainty domestically.
In September this year, Chinese regulators issued a ban on initial coin offerings, which was followed by all domestic exchanges shutting down trading between cryptocurrencies and fiat currencies.
As reported previously, once the largest exchanges in China, Huobi and OKCoin both shifted the business model to over-the-counter for crypto-to-crypto trading. While the operations are based in overseas markets such as in Hong Kong, trading is still available for Chinese retail investors using mobile payment or bankwire services.
Delaware image via Shutterstock