HK-Listed Venture Plans Yen-Backed Stablecoin with Hangzhou Government Support

Grandshores Technology Group, formerly SHIS Limited, is seeking to raise HK$100 million to finance a yen-backed stablecoin project.

Grandshores Technology Group, a Hong Kong-listed real estate company that recently switched to blockchain investment, is seeking to raise the equivalent of about $12.7 million through a digital token fund and use the money to launch a yen-backed stablecoin, according to the South China Morning Post.

Grandshores Technology changed its name from SHIS and shifted its focus to blockchain following its acquisition in May by a company run by Yongjie Yao. The latter is also a founding partner of the Hangzhou Grandshores Fund, which has backing from the government of China’s Hangzhou city. The 10 billion yuan ($1.45 billion) fund is also backed by Chinese crypto billionaire Li Xiaolai.

Yao, who serves as chairman of Grandshores Technology, stated that the company would attract investors outside China to raise USDT-denominated funds. USDT is a US dollar-backed stablecoin launched by crypto company Tether.

He also revealed that Grandshores was keen to invest in startups and crypto projects across the world as they might revolutionize the financial system and challenge the current monopolies.

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

Speaking about the yen-linked project, Yao unveiled that the founding partners of the Hangzhou Grandshores Fund were working with a Japanese bank to develop a stablecoin. It could be ready by the end of 2018 or the first quarter of 2019, and Yao is confident there will be strong demand for the asset.

“We believe cryptocurrency traders and exchanges will be potential takers of this stablecoin,” he added.

As of today, the founding partners of the Hangzhou Grandshores Fund along with some associated funds have invested 500 million yuan in crypto and blockchain projects abroad, including Zcash, GX Chain, and ONO.