TL;DR Breakdown
- Arta TechFin, a Hong Kong-based corporation, aims to provide cryptocurrency-enabled financial services.
- In its latest venture, the firm aspires to become a “hybrid finance” player.
Arta Technology, a fintech firm based in Hong Kong, is seeking permission from the Securities and Futures Commission (SFC) to change its license to offer bitcoin financing and other blockchain-backed financial services. Arta is the new name of Freeman Fintech, a Hong Kong-based stock brokerage that was rebranded last year by New World Development’s Adrian Cheng Chi-kong.
According to Cheng, the company has been working on a new platform that will allow businesses and individuals to borrow money in bitcoin, as well as issue and trade digital tokens. Cheng also said that the company is in talks with a number of firms about issuing structured products that would be backed by cryptocurrencies.
About Arta TechFin
The firm is the continuation of Hong Kong-listed broker Freeman Fintec Arta. It was rebranded last year as Adrian Cheng’s new fintech venture. Cheng has been making headlines for his investments in blockchain technology and Cryptocurrency. Arta TechFin recently concluded a strategic collaboration with fintech solutions provider Atlantic Technology to supply licensed investment managers and family offices with a SaaS-based asset management solution. The collaboration aims to streamline company processes.
Arta TechFin is not the only firm seeking to offer crypto-based financing products in Hong Kong. In March, the Hong Kong Monetary Authority (HKMA) granted a virtual banking license to a startup called Octopus Crypto. That license will allow Octopus to launch a range of crypto-related services, including a bitcoin custody service and a cryptocurrency lending platform. However, Hong Kong has been attempting to regulate crypto trading following the report released whereby Hong Kong SFC asked all crypto exchanges to register with them. Prior to the new Securities and Exchange Commission regulations, only trading platforms dealing with security tokens were required to register.
The growing interest in crypto-based financing products is unsurprising, as the global market for such products is projected to reach $2 trillion by 2022, according to a report by MarketsandMarkets. The report notes that the growth of the crypto asset class has led to an increase in demand for products that allow investors to leverage their positions.
Arta TechFin looks to introduce blockchain technology in traditional fintech services
Arta TechFin hopes to establish a presence in family offices, retail customers, and small and medium-sized businesses (SMEs). The company is seeking to emphasize its past experience with blockchain technology and its application in different sectors. Blockchain technology has been growing in popularity, as the various benefits offered by distributed ledger technology (DLT) have become more widely known. Arta TechFin hopes to leverage this popularity by offering products and services that utilize blockchain technology.
The firm is currently developing a blockchain-powered lending mechanism for family offices to give small company loans. It believes that its past experience with blockchain technology and its application of it in different sectors will provide it with a competitive edge in the fintech market.
It remains to be seen whether Arta TechFin will be successful in its efforts to recover from last year’s losses, but the company’s move to offer crypto-based financing products is a sign that the interest in such products is growing.
