China’s Juzhen Financials raises $23 mln – Asia’s largest investment in blockchain so far

China’s Juzhen Financials raises $23 mln – Asia’s largest investment in blockchain so far

- in All News, Cryptocurrencies
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China’s fintech company Juzhen Financials has raised $23 million to develop clearing and settlement solutions based on the distributed ledger technology (DLT), also known as blockchain. This, Coindesk reports, is the largest investment obtained by an Asian startup specializing in the technology so far.

According to the site Crunchbase, the Series A funding round was led by Wanxiang Holdings, which is also the sole investor.

Lilin Sun, Juhzen Financials head, told Coindesk that the investment places his company in a good spot to seek collaboration with banking incumbents on post-trade blockchain solutions with a potential market including broker-dealers, custodian banks, clearing houses and exchanges.

The new capital, Lilin said, will be used for personnel expansion and work addressing the technological limitations of blockchain, as well as risks like privacy and confidentiality. Part of the funding will be used for academic research on financial cryptography and work with universities.

“We will continue to spend resources on the research of cryptography,” he told Coindesk.

According to Lilin, even though there are many fintechs, like New York’s Digital Asset Holdings and London’s Clearmatics, offering similar solutions, Juhzen Financials understand the specifics of the Chinese market the best. “If you want to change the infrastructure, it takes a long time. It’s a lot of engineering work, and you have to understand the culture,” Lilin said. “We understand the Chinese market.”

In his words, the company is already working with online banking giant Webank and the blockchain consortium ChinaLedger.

As for regulation, he noted that unlike in the US where regulation comes first, the policies in China encourage innovation first and then seek to regulate them.

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