The Chinese government seems to be more interested in the cryptocurrency sector than one might think, as a major state-owned company is launching new cryptocurrency funds.
China Pacific Insurance (CPI) subsidiary CPIC Investment Management is launching two cryptocurrency funds in collaboration with investment firm Waterdrip Capital, local technology news agency 36Kr reported on April 3.
Owned by the Chinese central government, the Shanghai municipal government and China Securities Finance, CPI is the second largest real estate insurer in mainland China, after the People’s Insurance Company of China.
The new cryptocurrency funds appear to include a venture capital fund dubbed the Pacific Waterdrip Digital Asset Fund I, which will focus on investments in early-stage blockchain projects. The second fund, Pacific Waterdrip Digital Asset Fund II, will manage proof-of-stake digital assets.
According to the note, the new cryptocurrency funds will target institutional investors and wealthy individuals.
Waterdrip is a global investment institution that supports blockchain-related projects and cryptocurrency startups. Founded in 2017, Waterdrip is known for supporting the Chinese cryptocurrency mining industry and invest in projects like the Web3 Peaq decentralized network, based on Polkadot.
The company confirmed the news on Twitter on Monday, stating that the launch of the two joint cryptocurrency funds is related to the implementation of incentive policies related to virtual assets by the Hong Kong government.
With the implementation of incentive policies related to virtual assets by the Hong Kong government, CPIC Investment Management (HK) Company Limited and Waterdrip Capital jointly launched a digital asset fund. https://t.co/OeyulJNbo6
—Waterdrip Capital (@waterdripfund) April 3, 2023
CPIC did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
The news comes at a time when the Hong Kong government is increasingly committed to developing a local cryptocurrency infrastructure, differentiating its regulatory approach to cryptocurrency from China’s 2021 cryptocurrency ban. In late March, various online news stories suggested that some cryptocurrency companies in Hong Kong have been attracting increasing interest from Chinese state-owned banks.
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