Chinese Fintech Targets Blockchain Breakthrough for Global Finance

A leading Chinese fintech company is reportedly in advanced discussions to acquire blockchain infrastructure developed by the Venom Foundation, a blockchain provider based in Abu Dhabi. While the terms of the negotiations remain undisclosed, sources indicate that the aim is to integrate Venom’s blockchain technology into financial services supporting the real economy, particularly in areas such as supply chain finance and cross-border settlements. The potential deal aligns with broader efforts by Chinese regulators to promote the use of blockchain and artificial intelligence in enhancing financial transparency and efficiency.

Venom’s technology is designed to support high transaction throughput and interoperability with major virtual machines, including the Ethereum Virtual Machine (EVM) and Web Assembly (WASM). It also incorporates a fair-ordering layer to mitigate market manipulation and dynamic sharding to manage bottlenecks. These features are seen as particularly valuable in financial ecosystems where compliance and data integrity are critical. Industry analysts highlight that Venom’s built-in mechanisms for supporting KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols make it a compelling fit for China’s evolving digital finance landscape.

The potential integration of Venom’s blockchain into China’s financial infrastructure could also serve as a testbed for innovations in digital yuan and state-backed stablecoins. Market participants suggest that Venom’s architecture may help accelerate the development of yuan-pegged assets aimed at facilitating faster cross-border transactions. This would mirror previous efforts by Chinese firms to expand their international reach through foreign technology acquisitions, such as Ant Financial’s 2016 attempt to acquire MoneyGram and Hong Kong-listed OSL’s recent move to strengthen its crypto exchange capabilities via a Canadian acquisition.

Supply chain finance is another area where analysts believe Venom’s technology could have a significant impact. Small and medium-sized enterprises (SMEs) in China often face challenges securing bank credit due to limited financial data and trust. Blockchain’s potential to create a transparent “data credit” system is viewed as a way to bridge this gap, enhancing trust and access to capital. If successful, the Venom deal could establish a precedent for how Chinese institutions adopt foreign technologies to meet policy goals while advancing global competitiveness in digital finance.

Negotiations are expected to extend into late 2025 or early 2026, with Venom declining to comment on the matter due to confidentiality concerns. The outcome remains uncertain, but the deal, if finalized, would reflect a broader trend of Chinese companies leveraging overseas partnerships to access cutting-edge technologies and navigate domestic regulatory environments.