A major Chinese insurance company has helped establish two crypto investment funds in Hong Kong. The move was driven by Hong Kong’s ambition to become a hub for digital assets, despite the mainland’s negative regulatory attitude toward the market.
Chinese insurance giant enters the crypto space through its Hong Kong subsidiary
A Hong Kong company belonging to the China Pacific Insurance Company (CPIC) group has joined forces with Waterdrip Capital to create two investment funds in the SAR that will focus on industries built around blockchain technology and crypto assets.
CPIC is the third largest state-owned insurance company in China, Chinese crypto journalist and blogger Colin Wu, also known by his Twitter handle “Wu Blockchain,” reported in a Monday post, citing Chinese news media outlet 36kr.com Pointed out.
China’s third largest state-owned insurance institution Pacific Insurance Investment Management Hong Kong Branch and Waterdrop Capital launched a compliant blockchain venture capital fund and POS token income enhancement fund in Hong Kong. https://t.co/CctT9av4W3
— Wu Blockchain (@WuBlockchain) April 3, 2023
Waterdrip is an international investment organization that supports blockchain-oriented projects and crypto startups such as Polkadot. It was founded in 2017 by “the most advanced Chinese blockchain pioneers,” according to its website.
The two companies have two funds aimed at investing in this area: the Pacific Waterdrip Digital Asset Fund I and the Pacific Waterdrip Digital Asset Fund II (“POS Token Income Enhancement Fund), also known as the Venture Capital Fund.
The first invests in the early stages of new projects focused on the development of blockchain infrastructure, decentralized financial applications, web3, metaverse, and NFT (Non-Fungible token) applications, and the second invests in the development of POS (Proof-of-Stake) agreement mechanism-based digital assets primarily.
The main objective of this initiative is to provide investors with more diversified and innovative investment options. The fund targets institutional investors, such as corporations and family offices, as well as high net worth individuals.
China’s central government is cracking down on crypto-related activities in the People’s Republic, but there are indications that Hong Kong’s plan to become a major hub for digital assets is gaining support from Beijing A recentreport by Bloombergnotes that Chinese state-owned banks are opening its doors to crypto companies coming to the region.
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