WeBank shared its plans to tap into the expanding Web3 market in Hong Kong. According to reports, the Tencent-backed lender wants to use its subsidiary to leverage the growing market in the city. The move was confirmed by an executive of the firm as it looks to establish itself in Hong Kong, a region that has long served as a virtual asset hub.
Using its WeBank Technology Services that launched this month, the company’s executive, Henry Ma mentioned in an interview that the firm plans to be deeply involved in the developing Web3 infrastructure in Hong Kong.
Ma also mentioned that the company is very open to the sector, as it wants to explore its full potential. He added that the city needs to create a friendly Web3 infrastructure, one which he believes will be a good fit for the company.
WeBank pushes for Web3 expansion
WeBank, founded by Tencent and other Chinese firms in 2014, is the country’s biggest digital lender and the 10th largest unicorn globally. According to a report by the Hurun Research Institute published in April, the firm is valued at 235 billion yuan ($32.4 billion). Outside digital banking, the financial institution also services the Blockchain sector, operating its open-source blockchain platform FISCO BCOS.
According to a report by the company in December, the platform provides more than 500 use cases across several Chinese industries, including government services, education, and finance. In a statement by Ma, he mentioned that most of these industries use the blockchain application for data verification, noting that its true and untapped potential still remains in digital assets.
Ma mentioned that blockchain’s role as a trusted enterprise database has limited value without the assets. “That’s why I think, with the technology we’ve accumulated over the years, Hong Kong offers us bigger opportunities,” Ma added.
While China has been slow to adopt blockchain technology and has instituted a strict stance on crypto activities, Hong Kong has been consistent with its openness to the technology. The city has also received approval from Beijing to develop its crypto industry.
Henry Ma discusses the firm’s areas of specialization
According to Ma’s statement in the interview, WeBank will focus on some key areas that it wants to leverage. He mentioned areas like real-world assets, which will include the tokenization of physical assets.
WeBank is also a member of the “architecture community” of Project Ensemble, a central bank digital currency initiative carried out by the Monetary Authority of Hong Kong.
WeBank, in its quest for supremacy, will be going head-to-head with Ant Digital Technologies. The firm is a subsidiary of Chinese firm Ant Group, which owns the Hong Kong-based blockchain outfit Zan, a technology service that provides Web3 services. Ant Group also shares an affiliation with Alibaba Group Holdings, one of the biggest e-commerce platforms out of China.
Aside from providing its digital banking infrastructure technologies to firms in Hong Kong, WeBank is also looking to cover firms and companies in countries and regions that are under the Belt and Road Initiative. According to an announcement last week, the firm entered into a partnership with Tencent-backed Fusion Bank in Hong Kong, and Hong Leong Bank in Malaysia. Ma added that the company presently has about 30 employees, with plans ongoing to expand the number to 100 before the end of the year.
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