Shenzhen Hande Financial Technology Holdings Co. Ltd (HDFH) has announced a Global Digital Bank Consortium Blockchain Investment Fund. At the 2nd China International Import Expo (CIIE) in Shanghai, HDFH’s Chairman, Cao Tong, made the announcement. HDFH, Yillion Bank, and Zhongguancun Private Equity & Venture Capital Association (ZVCA) have joined hands to manage the fund. The venture aims at upgrading the investment targets, which ultimately will maximize the value in the capital markets.
Speaking about the need for a blockchain investment fund, Cao Tong stated that the venture is aimed at creating a leading digital bank which will help in building a global digital bank consortium blockchain. To achieve that, “the first step is to invest in and digitally transform a bank” and later on transform the “bank as the main node,” added Tong.
Domestic and international investors will also play a significant role in the consortium. As per reports, the valuation of the fund worth around $1 billion. Further, it will have a term extending around a 6-year investment phase and a 2-year exit phase.
All three partners in the venture have brought something to the table. HDFH is a leading fintech firm in China and has a vast experience when it comes to handling digital assets. HDFH is also the first fintech equity fund manager in China. Shenzhen Jia Asset Management, owned by HDFH, has set up two fintech innovation and venture capital funds with the help of district governments, public companies, industry groups, and commercial banks.
Yillion Bank, a state-approved internet bank in China, has a stable operational capacity and is active in the online credit business for a long time. Additionally, it has some big names like Meituan, JD Finance, Xiaomi Finance, and Du Xiaoman Financial as its partner. When it comes to networking and investment resources, ZVCA stands out as a front runner. The firm’s members, including public companies, financial groups, and corporate investors, collectively hold more than $300 billion of funds in their books. This one of its kind of global collaboration seems promising and holds a lot of hope for the blockchain industry.