Tencent, a multinational conglomerate company, is set to build a virtual bank based on blockchain technology. The decision is finalized after a new license gets approved by  the Securities and Futures Commission in Hong Kong. Blockchain-Based Virtual Bank being opened by Tencent.

Yige Cai, the Blockchain head of Tencent, confirmed that the firm has received the license approval for opening a virtual bank.

As per Sina Finance, a Chinese media source, the company will build a team to promote the banking platform based on Blockchain.

Cai stated, 

“Hong Kong’s new regulations and supervision on digital assets transactions validates the importance of blockchain technology and digital assets, which is good news for the whole industry.”

Until now, the SFC has approved virtual bank licenses for 12 organizations. The list includes Infinium Limited, a joint undertaking between ICBC, Tencent and other institutional investors.

Other blockchain initiatives by the internet giant were also mentioned by Cai, including supply chain funding for McDonald’s, the global fast-food company.

In addition, Cai is presently the chief of the consortium blockchain team; one of three blockchain teams in Tencent. The other groups deal with blockchain-based infrastructure and cloud services.

The SFC presented information on its latest licensing method to manage transactions of virtual assets. The system has created a similar structure to those regulating security brokers.

Other firms that have been issued approved licenses are Ant Financial (Alibaba’s financial technology arm), and SC Digital Solutions Ltd. Standard Chartered Bank owns 65 percent of the latter company’s stake.

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