HK-listed Contractor Turns To Blockchain Investments Starting With a Japanese Crypto

Sep 19, 2018 at 23:08

Hong Kong-listed contractor Grandshores Technology Group has turned to blockchain investments as its chairman sees mainstream adoption of the technology in three to five years.

In a report by South China Morning Post, Grandshores Technology chairman Yongjie Yao said the company is looking fund start-ups and crypto projects as blockchain developers are seen to disrupt the financial system.

“Blockchain will become the mainstream technology in the next three to five years,” Yao said.

“We are entering the next stage of blockchain evolution, a stage which is akin to when computer operating system was transiting from MS-DOS [disk operating system] to MS-Windows.”

Formerly a contractor firm, Grandshores Technology shifted its focus to blockchain investments after it was acquired by a company controlled by Yao last May, which led to its back door listing.

Yao also partly founded the 10 billion yuan ($1.45 billion) Hangzhou Grandshores Fund, which backed by the Hangzhou government and China’s bitcoin tycoon Li Xiaolai.

To be in line with its new goal of investing in blockchain development, Grandshores Technology will start by raising KHD 100 million (or $12.7 million) through a digital token fund to finance a yen-backed cryptocurrency project.

The project is called the stablecoin, a cryptocurrency pegged to gold or fiat money like the US dollar.

For Grandshores Technology, the crypto project will be backed by the Japanese yen.

The company is looking for investors outside China to give financing through tether, a cryptocurrency backed by the US dollar.

The yen-backed stablecoin is eyed for launching by end-2018 or early 2019.

Once the project is successful, Grandshores Technology will look at other stablecoins linked to the Hong Kong dollar or Australian dollar.

“We believe cryptocurrency traders and exchanges will be potential takers of these stablecoin,” Yao said.