Blockchain's Future in Asia

Super wealthy Asians are not allotting all their investment monies to real estate in Canada. Many are now considering the innovative approaches and conceptions of start-up entrepreneurial companies as the necessary component for increasing wealth.

In particular, blockchain or distributed ledger technology has boosted energy in the financial services industry. Digital records have replaced paper proof of payments, business and foreigner loans Singapore, and many others. The global venture capital funding for block-chain grew by 91% between 2014 and 2015. Over $216 million dollars was invested in the first quarter of 2016, surpassing investment in bitcoin for the first time.

China Wanxiang Holdings, a long-time significant player in the financial industry, foresaw the power and possibilities of this digital turning point in the earliest days of the technology. They financed the China Ledger Alliance for research. It is dedicated to the expansion of the use of financial technology (fintech) and welcomes this second coming of the internet. Information is now being replaced with value and these platforms are likely to reshape the business world.

The non-profit research institution Wanxiang Blockchain Labs was established in 2015. This endeavor provides support for research, development, and applications of blockchain. Blockchain Labs also tracks and references information for government regulators. Wanxiang dedicated its time in exploring this coding breakthrough’s contribution to the global economy and society. Its commitment reflected in the $50 million venture capital fund Fenhushi Capitol specifically for blockchain applications. Additionally, they sponsor international block-chain summits to showcase newly developed projects to potential investors. Proof of concepts and real world applications are required. These gatherings are informative and profitable to both groups.

Currently, Wanxiang has over 30 joint-venture companies and is its overseas income is estimated to be $300 million. Lu Guanaqui’s is the founder and Chairman of the Board of Directors at Wanxiang and his business acumen needs no clarification. The company began with tractor repair services, moved on to manufacturing auto parts, and later diversified into finance, real estate, solar power development, and other sectors.

The calculated pursuit of cross-border acquisitions began in 1993 in the United States with negotiations with auto parts suppliers in the state of Kentucky. The strategy to acquire numerous established parts companies accumulated in 1997 with an order from General Motors, a top tier car manufacturer. Wanxiang’s business achievements and excellent reputation are considered a leader in the overseas mergers and acquisitions (M&A) area.

One such investment is Everledger which is an award winning permanent ledger for diamond certification, financing, and insurance. Everledger’s use of blockchain technology to combat fraudulent activity and state of the art evaluations has been the subject of case studies. It has been incorporated into industry presentations as well. Wanxiang’s Fenhushi Capitol provided a cash infusion to support a data base and verification of proof of ownership of jewelry, precious metals, and other high value commodities.

Lu’s embrace and dedication to promotion and application of Blockchain industry and investment in the coding breakthrough almost guarantees digital currency will prosper in the near future. Fintech companies are challenging the financial systems and corporations that limit their reliance on software. Trust and education are needed to fully appreciate these exciting milestones.

14 November 2016