SCO's 2035 Blockchain Strategy and Its Implications for Emerging Markets Tech Investment

The Shanghai Cooperation Organization (SCO) has unveiled an ambitious 2035 Blockchain Strategy, positioning itself as a catalyst for digital transformation in emerging markets. With 23.16% of global GDP and over 50% of the world’s population, the SCO’s blockchain-driven initiatives are reshaping economic corridors, financial systems, and technological ecosystems. For investors, this represents a unique opportunity to capitalize on high-growth blockchain infrastructure and digital economy platforms across member states like China, Pakistan, and Uzbekistan.

The SCO’s 2035 Blockchain Vision: A Strategic Shift

The SCO’s 2035 Development Strategy, approved at the 2025 Tianjin Summit, emphasizes blockchain as a cornerstone for cross-border trade, local-currency settlements, and digital infrastructure. China, the bloc’s technological leader, has already integrated platforms like WeChat Pay and Alipay with Central Asian partners to reduce reliance on the U.S. dollar [1]. The proposed SCO Development Bank further institutionalizes this vision, aiming to fund blockchain-based projects while bypassing Western-dominated financial systems [3].

Artificial intelligence (AI) and blockchain are being positioned as twin pillars of the strategy. The Tianjin Declaration underscores collaborative AI governance and secure data-sharing mechanisms, aligning with broader initiatives in e-commerce and smart cities [3]. By 2035, the SCO aims to create a multipolar digital economy, leveraging blockchain to enhance transparency, reduce transaction costs, and foster regional integration [5].

High-Growth Opportunities in Key Member States

China: The Digital Silk Road’s Backbone

China’s blockchain infrastructure is expanding rapidly under the Digital Silk Road. The China-SCO Big Data Cooperation Center in Xinjiang has trained over 300 participants from member states, focusing on blockchain and digital infrastructure [2]. Additionally, Luban Workshops in 10 SCO nations are training professionals in AI, blockchain, and 5G, bridging the digital divide [6].

A notable project is the China-Kyrgyzstan-Uzbekistan cross-border fiber-optic cable, which has reduced regional network latency by 40% [1]. This infrastructure supports blockchain-based supply chain solutions and cross-border e-commerce, with platforms like Soho Cloud connecting Central Asian buyers with Chinese suppliers [2].

Pakistan: Digital Public Infrastructure and Fintech

Pakistan’s Digital Public Infrastructure (DPI) initiative has created 114 million digital accounts as of 2023, enabling branchless banking and mobile cash transfers [1]. The country is now integrating blockchain into its DPI framework to enhance transaction security and reduce fraud. For example, Karot Hydropower Station, a China-Pakistan joint venture, uses blockchain for energy trading and grid management [5].

The China-Pakistan Economic Corridor (CPEC) is also driving blockchain adoption in logistics. A 2024 report by Bloomberg indicates that cross-border e-commerce between China and Pakistan grew by 14% in 2024, reaching $12.8 billion, with blockchain platforms streamlining customs and logistics [5].

Uzbekistan: IT Parks and Regional Collaboration

Uzbekistan’s IT Park has become a hub for blockchain innovation, partnering with Chinese firms like Huawei and ZTE to develop digital education and AI-driven solutions [1]. A trilateral memorandum signed in 2025 between Uzbekistan’s IT Park, Kazakhstan’s Astana Hub, and China’s Growth Vision Pro Ltd. aims to support startups and strengthen regional capital flows [1].

The country is also advancing green technology projects, such as the Zarafshan wind project, which uses blockchain for energy distribution and carbon credit tracking [5]. These initiatives align with the SCO’s 2035 goal of institutionalizing a non-Western model of global governance [5].

Funding, Partnerships, and Regulatory Support

The SCO’s blockchain strategy is backed by substantial funding and partnerships. China has pledged $1.4 billion in loans over three years to support infrastructure, energy, and digital projects across member states [3]. The SCO Development Bank, modeled after the BRICS New Development Bank, will further institutionalize these efforts, offering investors opportunities in green energy, railways, and fintech [4].

Regulatory harmonization remains a challenge, but the Digital SCO Hub, proposed during the 2025 Digital Economy Forum, aims to create a centralized coordination mechanism for blockchain projects [5]. This hub will address disparities in digital infrastructure and legal frameworks, enabling modular cooperation in sectors like e-commerce and cybersecurity [5].

Geopolitical Implications and Investor Takeaways

The SCO’s blockchain strategy is not just about economic growth—it’s a geopolitical play to counter Western-led systems. By 2035, the bloc aims to control 15% of global digital trade, leveraging blockchain to reshape global power dynamics [5]. For investors, this means:
1. Prioritize China-led platforms: Luban Workshops, China-SCO Big Data Center, and Soho Cloud offer scalable blockchain solutions.
2. Target Pakistan’s DPI and CPEC projects: Fintech and logistics blockchain platforms are high-growth areas.
3. Invest in Uzbekistan’s IT Park and green tech: Regional collaboration and green energy projects are underfunded but strategic.

Conclusion

The SCO’s 2035 Blockchain Strategy is a masterstroke for emerging markets, combining technological innovation with geopolitical ambition. For investors, the key lies in identifying projects that align with the bloc’s digital transformation goals—particularly in China, Pakistan, and Uzbekistan. As the SCO moves closer to its 2035 targets, blockchain infrastructure and digital economy platforms will become critical assets in a multipolar world.

Source:
[1] SCO Development Strategy through 2035 approved at [https://eng.belta.by/president/view/sco-development-strategy-through-2035-approved-at-tianjin-summit-171031-2025/]
[2] The SCO's Digital Transformation: Strategic Intentions and [https://theasiatoday.org/essays/the-scos-digital-transformation-strategic-intentions-and-structural-realities/]
[3] The SCO as a Strategic Platform for Emerging Markets [https://www.ainvest.com/news/sco-strategic-platform-emerging-markets-investment-2509/]
[4] SCO Summit: Member states to set up Development Bank [https://timesofindia.indiatimes.com/business/international-business/sco-summit-member-states-to-set-up-development-bank-will-push-efficiency-and-social-development/articleshow/123639874.cms]
[5] China, SCO partners keen on sustainable growth [https://www.chinadailyasia.com/article/618979]