Seven Stars Cloud, China Think Tank Partner To Expand Tokenized Assets

News | July 24, 2018 By:

FinTech firm Seven Stars Cloud (SSC) has partnered with the China Venture Capital Research Institute (CVCRI) to provide blockchain and FinTech services to financial markets.

Powered by blockchain and artificial intelligence (AI), SSC facilitates and enables the transformation from traditional financial markets into the asset digitization era. The firm acts as the manager and service provider of an ecosystem for securitization and digital currency tokenization as well as trading system integration.

CVCRI is a venture capital research firm that provides advisory services to China’s financial industry. With a status of a National Think Tank in China, it has undertaken research topics and market experiments commissioned by various national and local government agencies. It is also the publisher of the National Venture Investment and Entrepreneurship Year Book and the organizer of annual conferences.

The new partnership will enable SSC to create a fully-compliant digital asset ecosystem and provide a full value chain of FinTech and asset digitization services. These include AI-enhanced rating and risk management services, blockchain-enabled fractionalization, securitization and tokenization, and distribution and trading services through banks and security broker dealer networks in China.

As the partnership continues to develop, SSC’s digital asset ecosystem will also be capable of digitizing and tokenizing existing asset-backed securities (ABS) and real estate investment trusts (REIT) products on a global basis, which can be traded on regulated digital asset exchanges worldwide. SSC will also work with CVCRI to develop products for the fixed income asset class and facilitate their sales and trading process on government designated exchanges within China.

Ding Jihong, President of CVCRI, said that the partnership with SSC is a meaningful step towards FinTech innovation in China. She added that it will create the liquidity for large financial institutions and asset owners through both the creation of fixed income products and sales and trading through government designated and approved channels and platforms.

“All the activities under this relationship will be carried out and executed under close guidance from regulators,” Jihong said. “This exclusive partnership could unlock great value for current illiquid portions of investment funds in China, which reached by end of June a total 73,854 funds with total Assets Under Management (AUM) of $1.88 trillion USD. For large insurance companies holding commercial real estate, the untapped fixed income market value grows much larger.”