Blockchain-based companies are increasingly dominating the Hong Kong financial market. 39% of new fintech companies that started operations last year were based on block chains.
According to the Financial Services Bureau and the Hong Kong Treasury Department, blockchain is gaining an increasing share in the financial technology sector from year to year.
Blockchain drives large enterprises in Hong Kong
Report published by the Hong Kong Treasury Department on June 1, presented detailed data on accelerated growth of blockchain popularity in the fintech industry.
Blockchain is currently the fastest growing segment of this industry in Hong Kong. 22 of the 57 companies that started operations over the past year are based on this technology.
WealthTech is the second fastest growing sector, which includes 20% of newly established companies. Next up is the payment sector – 17% and InsurTech – 9%.
The report states that since April 2019, the number of fintech companies operating in Hong Kong has exceeded 600. Since then, eight licenses for virtual banks and four licenses for virtual insurance companies have also been issued.
Enterprises in Hong Kong use blockchain
According to the report, DLT solutions for enterprises are the largest sub-sector in the blockchain industry in Hong Kong. He is represented by 45 percent of all companies.
Cryptocurrency trading platforms cover 27 percent of the industry, followed by financial advisory companies for digital assets – 14%, and accounting companies – 9%.
The report states that blockchain belongs to the same technology group as artificial intelligence, big data or cloud computing, which together form the basis for the “tectonic changes” observed in the virtual banking sector in Hong Kong. DLT is also used in several InsurTech initiatives to modernize the insurance industry.
The Hong Kong State Treasury also noted that the use of fintech and blockchain technology increased significantly after the outbreak of the coronavirus. The pandemic emphasized how much performance can be increased thanks to blockchain technology and how useful tools it offers.
If you want to learn more about blockchain in fintech, we invite you to read the article: Blockchain and Fintech – a finance revolution is happening right before our eyes