Global Digital Bank Consortium Blockchain Investment Fund

At the end of November, 2019 at a forum in Shanghai it was announced creation of fund for investment into a blockchain project. The fund under the name Global Digital Bank Consortium Blockchain Investment Fund is started HDFH financial technical-company, venture company Zhongguancun Private Equity & Venture Capital Association (ZVCA) and Yillion Bank. Capital of fund will make about $1 billion.

The new initiative is intended for investments into digital banks and directed to support of their development. Its investment period will be six years, exit term of a position — two years. The fund is focused on startups of continental China, Singapore and Australia, but will invest also in the companies from other regions.

The chairman of HDFH of Cao Tong (Cao Tong) reported that the fund was created for support of digital banks and infrastructure financial technical-platforms worldwide. The first stage is investment and digital transformation of banks, the second stage - creation of global blockchain consortium of digital banks which cornerstone will be a bank which underwent digital transformation.

Founders of fund well proved in the native China. HDFH manages six financial technical-platforms in the field of corporate crediting, a blockchain, cloud services, Big Data and digital asset management. Besides, in cooperation with the British consortium FinTech Circle the company opened Global FinTech Lab laboratory at the Chinese University of Hong Kong and the International currency institute of the Renmin university.

One more of founders of fund, Yillion, became the first private bank which began the activity in the Chinese "rusty belt", the industrial zone in the northeast of the country, in 2017. Its two largest shareholders are the Beijing investment firm Zhongfa (30%) and Meituan subsidiary company (28.5%), the largest Chinese service provider on demand. Besides, the bank cooperates with JD and Xiaomi Finance.

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