China Pacific Insurance (CPI), a state-owned company, has launched two cryptocurrency funds in partnership with investment firm Waterdrip Capital.
- The Pacific Waterdrip Digital Asset Fund I will focus on investments in early-stage blockchain projects, while the Pacific Waterdrip Digital Asset Fund II will manage proof-of-stake digital assets.
- These funds will target institutional and wealthy private investors, according to Waterdrip Capital’s blog post published Thursday, which confirmed the report of local media outlet KR36.
- Owned by the Chinese government, CPI is the second-largest property insurance company in the country. Its subsidiary, CPIC Investment Management in Hong Kong, will reportedly manage the funds.
- Waterdrip Capital is a global investment institution founded in Shanghai in 2017 that has previously invested in the Chinese crypto mining industry and supported blockchain-related projects.
- The firm said in its blog post that the launch of the two crypto funds relates to the implementation of virtual assets-linked incentive policies by the Hong Kong government.
- The launch of these funds coincides with Hong Kong’s commitment to becoming a regional hub for the Web3 industry. A number of Chinese state-owned banks’ branches in Hong Kong have reportedly started offering services to local cryptocurrency companies.
- Crypto transactions and mining have been banned in China since 2021, and exchanges were kicked out of the mainland in 2017.