From a report, about 40% of new fintech firms launched in Hong Kong are operating in the blockchain sector.
Blockchain firms are increasingly dominating Hong Kong’s financial technology sector, with 39% of new firms launching in the country’s fintech industry last year are operating with distributed ledger technology, or DLT.
According to Hong Kong’s Financial Services and Treasury Bureau, DLT represents an increasingly dominant share of the country’s new fintech firms year-over-year, up from 27% as of 2018.
Since April 2019, the report notes that the number of fintech businesses operating in Hong Kong has exceeded 600, including the issuance of eight virtual bank licenses and four virtual insurerThe report finds enterprise DLT solutions to comprise the largest sub-sector of the territory’s blockchain industry — representing 45% of Hong Kong’s distributed ledger firms.
Trading platforms for cryptocurrencies comprise 27% of Hong Kong’s blockchain sector, followed by digital asset custodians with 14%, and trade finance settlement with 9%.
The report asserts that blockchain is among artificial intelligence, big data, and cloud in comprising the stack of technologies underpinning the “tectonic shifts” observed in Hong Kong’s virtual banking sector. DLT is also being employed in several InsurTech initiatives intended to overhaul and modernize the territory’s insurance industry.
Hong Kong’s treasury also notes an acceleration in the embrace of fintech and blockchain technologies amid the coronavirus breakout, with the pandemic highlighting many of the efficiency savings and utilities offered by DLT