Tencent-backed WeBank eyes Web3 expansion in Hong Kong amid city's virtual asset push

Tencent Holdings-backed online lender WeBank is leveraging its new Hong Kong subsidiary to tap the city's expanding Web3 market, according to a company executive, as the financial hub continues its pursuit to establish itself as a virtual asset hub.

WeBank Technology Services, launched this month, plans to be "deeply involved" in developing the city's Web3 infrastructure, as it holds a "very open" attitude towards the industry, WeBank's chief information officer Henry Ma said in an interview.

"I think Hong Kong needs a robust and regulator-friendly Web3 infrastructure," Ma said. "I believe we are a very good fit."

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Founded by Tencent and other Chinese firms in 2014, Shenzhen-based WeBank is China's largest online-only lender and the world's 10th largest unicorn, valued at 235 billion yuan (US$32.4 billion) last year, according to a Hurun Research Institute report published in April.

Henry Ma, chief information officer at WeBank, speaks at the opening of Hong Kong Fintech Week on October 31, 2018. Photo: K. Y. Cheng alt=Henry Ma, chief information officer at WeBank, speaks at the opening of Hong Kong Fintech Week on October 31, 2018. Photo: K. Y. Cheng>

Beyond digital banking, WeBank also operates an open-source blockchain platform named FISCO BCOS, which the company said in December has more than 500 use cases in China across industries including finance, government services and education.

While data verification remains the most substantial blockchain application for these industries on the mainland, the technology's true potential lies in digital assets, according to Ma. Without these assets, blockchain's current role as a "trusted enterprise database" generates limited value, he said.

"That's why I think, with the technology we've accumulated over the years, Hong Kong offers us bigger opportunities," Ma said.

China has maintained strict oversight of cryptocurrency-related activities on the mainland while attempting to promote the use of blockchain technology. Hong Kong, however, has an implicit green light from Beijing to develop its virtual asset industry.

In Hong Kong, WeBank plans to explore opportunities in areas including real-world assets, which involves the tokenisation of physical assets such as artworks to make them digitally tradeable, Ma said.

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