Chinese Blockchain Fund Plans To Create Yen-Backed Stablecoin

News | September 19, 2018 By:

Hong Kong-based Grandshores Technology Group is seeking to raise HK$100 million ($12.7M USD) via a digital token fund to create a Japanese yen-pegged stablecoin.

Grandshores Technology Group, formerly SHIS Limited, is an investment holding company principally engaged in contracting business. The company shifted its focus to blockchain investment following its acquisition in May of a company run by Yongjie Yao, who is a founding partner of the $1.45 billion Hangzhou Grandshores Fund. The fund is backed by Chinese bitcoin investor Li Xiaolai and the local government of the city of Hangzhou.

Yao said that the company is planning to attract investment from qualified investors from outside China to raise funds via Tether, a US dollar-backed stablecoin. He said that the fund’s partners are working with a Japanese bank to develop the yen-backed stablecoin. He added that the stablecoin could be ready by the end of 2018 or the first quarter of 2019.

“We believe cryptocurrency traders and exchanges will be potential takers of these stablecoin,” Yao said, adding that stablecoins anchored to the Hong Kong and Australian dollars might also be developed in the future.

Yao also said that his company was seeking to fund startups and cryptocurrency projects globally as they believe some blockchain unicorn-hopefuls were on track to disrupt the traditional financial system and challenge the current monopolies.

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

At present, the founding partners of Hangzhou Grandshores fund, together with some of its affiliated funds under Grandshores Technology, have invested 500 million yuan ($72.9M USD) globally in blockchain and cryptocurrency projects outside China, including Zcash, GX Chain, and ONO.