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40% of Hong Kong’s fintech startups work with blockchain

June 7, 2020

Blockchain companies are increasingly dominating the Hong Kong financial technology sector, as 39% of startups founded in the country’s financial technology industry last year were powered by logbook technology. distributed or DLT.

According to the Hong Kong Treasury and Financial Services Office, DLT is an increasingly important part of the country’s fintech startups every year.compared to 27% in 2018.

Blockchain drives big business in Hong Kong

A June 1 report published by the Hong Kong Treasury Department provides a detailed snapshot of the accelerated growth the blockchain within the territory.

40% of Hong Kong’s fintech startups work with blockchain40% of Hong Kong’s fintech startups work with blockchain

Blockchain is the fastest growing segment of the financial technology industry in this area, with 22 of the 57 financial technology companies that were launched in Hong Kong with DLT last year.

WealthTech was the second fastest growing sector with 20% of fintech startups. followed by payments at 17% and InsurTech at 9%.

Since April 2019 The report notes that the number of fintech companies operating in Hong Kong has exceeded 600, including the issuance of eight virtual banking licenses and four virtual insurers.

Hong Kong companies adopt blockchain

The report concludes that DLT business solutions represent the largest subsector of the area’s blockchain industryand they make up 45% of the distributed general ledger companies in Hong Kong.

Trading platforms for cryptocurrencies make up 27% of the blockchain sector in Hong Kong, followed by custodians for digital assets at 14% and liquidation of trade finance at 9%.

The report claims that the blockchain between artificial intelligence, big data and the cloud lies in the composition of the stack of technologies that underpin the “tectonic changes” in Hong Kong’s virtual banking sector.. DLT is also used in various InsurTech initiatives to revise and modernize the area’s insurance industry.

The The Hong Kong Treasury Department also sees an acceleration in the introduction of fintech and blockchain technologies when the corona virus breaks outThe pandemic shows many of the efficiency savings and benefits that DLT offers.