A Chinese fintech consortium has launched a blockchain investment fund to invest in blockchain technology and also develop a fully digitalised bank. The fund, called the Global Digital Bank Consortium Blockchain Investment Fund, has raised $1 billion in funding so far to invest in the digital banking industry till 2024.
The consortium consists of Shenzhen Hande Financial Technology, a leading fintech firm in China, Yillion Bank- a China-based digital bank and Zhongguancun Private Equity and Venture Capital Association- a non-profit membership organization dedicated to promoting Private Equity and Venture Capital industry in China.
The fund was initiated by Shenzhen Hande Financial Technology Yillion Bank and Zhongguancun Private Equity and Venture Capital Association joined in on a later date. Reportedly, it will have a six-year investment phase and a two-year exit phase.
The fund, which has been launched with partnerships with both domestic and international investors, will aim to integrate blockchain technology with China’s banking sector. It will also invest in digital banks in Singapore, Australia, and many other countries.
According to Shenzhen Hande Financial Technology chairman Cao Tong, the fund will focus on building an innovative global digital bank consortium blockchain in order to achieve broader value for the participating digital banks.
Cao Tong told the media, “Based on the investor’s accumulation of experience in the fintech sector, the fund plans to invest in and create a leading digital bank, through which it will build a global digital bank consortium blockchain. 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.”