About 4 out of 10 new fintech firms that made their way to Hong Kong from last year are in the blockchain sector.
Many of the firms in the Hong Kong’s Fintech sector deal on blockchain. About 40% of the ones recently established in the Fintech industry use Distributed Ledger Technology (DLT).
Hong Kong appears to be a fertile ground for DLT technology as it keeps growing from year to year. It is a thing of joy seeing it leap from 27% in 2018 to 39% recently. This information can be verified at Hong Kong’s Financial Services and Treasury Bureau.
Blockchain is the brain behind major businesses in Hong Kong
On June 1, The treasury department of Hong Kong reported with proofs that blockchain’s growth in Hong Kong is at a high rate.
Out of the 57 new Fintech firms in Hong Kong, 22 of them are blockchain related and use DLT. This further indicates blockchain’s wide acceptance.
The Fintech sector with the second best performance is WealthTech. It is second with 20% while the third with 17% is the Payments sector. InsurTech is placed fourth with 9%.
Fintech businesses that have been growing on Hong Kong’s soil since April 2019 total over 600. This includes eight virtual banks and four virtual insurers.
Hong Kong’s businesses adopt blockchain.
Blockchain industry in Hong Kong is dominated by those that use DLT solutions (45%). This is followed by Trading platforms that deal on cryptocurrencies (27%). Custodians of digital currencies and trade finance settlement occupy the third and fourth places with 14% and 9% respectively.
From the reports given, it is obvious that blockchain technology is among the tools used to sustain a major change in Hong Kong’s virtual banking sector. Others that have contributed to its development are artificial intelligence, big data and cloud. The insurance industry in Hong Kong is also undergoing a change with the application of DLT in some InsuTech projects.
It is even heartwarming to see these improvements in Hong Kong’s Fintech and blockchain technologies during the COVID-19 epidemic. In fact, the pandemic has made one to realize that DLT’s savings and utilities are capable of producing results.