Grandshores Technology Group, formerly SHIS Limited, an investment holding company principally engaged in contracting business that turned to blockchain investor firm, plans to raise HK$ 100 million (US$12.7 million) via a digital token fund to finance a Yen backed stablecoin.
A stablecoin is a cryptocurrency pegged to a stable asset such as gold or hard currencies like Tether or Truecoin which are pegged to USD. Talking to BlockPublisher about new stablecoins coming to the crypto market, Chief Investment Officer of i94 Capital, a cryptocurrency Hedge fund, Colton Robtoy had said;
(It) is easier to think in terms of USD for pricing.
The founder of Grandshores Technology, Yongjie Yao, is also a founder of $1.45 billion investment firm Hangzhou Grandshores Fund, which has received backing from the Hangzhou government. With the supports from government, blockchain powers such as Grand Shores Capital is gathering talents to Hangzhou, wishing to take the high ground in advance and looking for next Alibaba.
SHIS Limited was primarily focused on providing building services, such as maintenance and installations of mechanical and electrical systems including repairs and renovation services and the provision of construction works but since its acquisition it expanded its footprint into blockchain business, which in turn expanded the firm’s ability towards high-end specialist services, such as design and construction, operation and maintenance and management of data centers and other high performance data processing facilities and equipment in relation to blockchain technologies. Along with this, Grandshores Technology also provides digital asset management related services, such as hash leasing, hosting, lending and exchange.
Gemini, a well-renowned digital currency exchange, recently launched its US dollar backed stablecoin named the Gemini dollar. Talking to BlockPublisher regarding Gemini dollar increasing public acceptance of cryptos, one of the well-renowned personalities in the blockchain world, Thomas Power, who is also the board member of 9 Spokes, stated:
Yes “a little” for sure but without SEC ETF BTC approval, crypto won’t ever be fully trusted.
While talking to SCMP, Yao shed light on the company’s motive behind this development which was to break monopolies of giants in the financial markets by funding of start-ups and crypto projects that he believed might lead them to disruption of traditional financial systems. Obvious from his statements, Yao also expressed his trust in blockchain and deemed it to be the next heir to financial markets.
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 —Yongjie Yao.
For the yen stablecoin project, Yao said the founding partners of the Hangzhou Grandshores fund, are currently working with a mid-tier Japanese bank, whose name he refused to divulge, in creating an as-yet-unnamed stablecoin which should be ready to be launched in late 2018 or early 2019.
Grandshore Capital is jointly funded by Hangzhou Yuhang District Government, Future Sci-Tech City Management Commission and Tunlan Investment. The fund scale of Grand Shores Capital reaches about 10 billion RMB (1.57 billion USD). Li Xiaolai, the Chinese cryptocurrency celebrity, is another backer of the fund.
The news comes at a critical time when China has shown an iron-fist to cryptocurrency, the latest move being the banning of crypto related events and blocking of hundreds of foreign exchange websites.