Tencent to Build Virtual Bank After Hong Kong Regulator Approves License

Tencent received the green light from the Hong Kong Securities and Futures Commission to build a blockchain-based virtual bank.

AccessTimeIconNov 8, 2019 at 10:00 p.m. UTC
Updated Sep 13, 2021 at 11:41 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Chinese internet giant Tencent is set to open a blockchain-based virtual bank after the Hong Kong Securities and Futures Commission (SFC) approved a new license.

Speaking at the World Blockchain Summit in Wuzhen, China on Friday, Tencent blockchain chief Yige Cai said the company's virtual bank received the SFC's green-light. Moving forward, the company will assemble a team to support the blockchain-based banking platform, according to Chinese media site Sina Finance.

"Hong Kong’s new regulations and supervision on digital assets transactions validates the importance of blockchain technology and digital assets, which is good news for the whole industry," Cai said in his speech at the summit. 

The SFC has granted virtual bank licences to 12 entities so far. On the list is Infinium Limited, a joint venture between Tencent, Industrial and Commerce Bank of China (ICBC) and other two Hong Kong-based institutional investors.

Tencent renamed Infinium to Fusion Bank in July after it received the license in May. 

Cai did not disclose further details about the virtual bank, while stressing Tencent’s existing  blockchain projects, including the offering of a supply chain financing for global fast food chain restaurant McDonald’s, according to the report. 

According to another report, Cai is currently leading the consortium blockchain group out of the three blockchain development groups in Tencent. The other two are responsible for blockchain infrastructure and its blockchain-based cloud services, respectively. 

Other companies include Alibaba’s fintech arm Ant Financial and SC Digital Solutions Limited, whose 65 percent stake is owned by Standard & Chartered Bank.  

The SFC published details about its new licensing system to regulate virtual asset transactions on Wednesday, creating a similar framework to the one overseeing securities brokers.

Tencent image via testing / Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.