Two crypto funds are launched in Hong Kong by a Chinese state insurance company: Report

Two crypto funds are launched in Hong Kong by a Chinese state insurance company: Report

Two crypto funds are being launched by CPIC Investment Management, a Chinese government-backed company that specializes in blockchain investment and staking.

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According to reports, a state company in China is creating new cryptocurrency funds. This suggests that the Chinese government is more optimistic about the cryptocurrency industry than you might think.

CPIC Investment Management (a subsidiary of China Pacific Insurance) is launching two cryptocurrency funds in partnership to the investment firm Waterdrip Capital. This fund will be used by the local tech-focused news agency 36Kr reporting on April 3.

CPI, which is owned by the central government of China and the Shanghai municipal government, as well as China Securities Finance, is the second-largest property insurance company on mainland China, after the People’s Insurance Company of China.

According to reports, the new crypto funds will include a venture capital fund called Pacific Waterdrip Digital Asset Fund I that will invest in early-stage blockchain projects. The Pacific Waterdrip Digital Asset Fund II will manage proof-of–stake digital assets.

The report states that the new crypto funds will be targeted at wealthy private investors and institutions.

Waterdrip is a global financial institution that supports blockchain-related projects as well as crypto startups. Waterdrip was founded in 2017 and is well-known for its support of the Chinese crypto mining industry, as well as investing in projects such Polkadot’s decentralized Web3 network Peaq.

Related: The crypto rules in Hong Kong are set high for ‘good reasons’, says an SFC advisor

Twitter was used by the firm to confirm Monday’s news. It stated that the launch of two joint crypto funds is related to the implementation incentive policies for virtual assets by Hong Kong government.

Cointelegraph reached out to CPIC for comment but they did not respond immediately. In the event of new information, the article will be updated.

This news comes as Hong Kong’s government is becoming more committed towards developing local cryptocurrency infrastructure. It distinguishes its crypto regulation approach to China’s 2021 crypto ban. Online reports indicated that Hong Kong’s crypto firms were increasingly attracted by Chinese state-owned banks in late March.

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