According to Toutiao, a leading Chinese fintech player, it is in advanced discussions to acquire blockchain infrastructure developed by the Venom Foundation, based in Abu Dhabi. The talks reflect Beijing's growing focus on adopting cutting-edge digital technologies to reinforce both domestic and cross-border financial systems.
The timing aligns with policy developments. Earlier this year, Chinese regulators issued guidelines urging banks and financial service providers to accelerate the use of blockchain, artificial intelligence, and other technologies to improve transparency and efficiency in financing the real economy.
Industry analysts point out that, beyond performance, Venom offers features tailored for compliance, such as built-in mechanisms to support KYC and AML, and compatibility with multiple virtual machines, making it adaptable to complex financial ecosystems.
Such characteristics resonate with ongoing debates in China about the future of the digital yuan and state-backed stablecoins. Market participants note that Venom's architecture could serve as a testbed for developing yuan-pegged assets designed to facilitate faster cross-border payments.
This would not be without precedent. Over the past decade, Chinese firms have repeatedly acquired foreign technology assets to bolster domestic innovation. For instance, in 2016, Ant Financial (now Ant Group) acquired MoneyGram to expand its cross-border payment reach, though the deal faced regulatory hurdles abroad. More recently, Hong Kong-listed OSL pursued a Canadian acquisition to strengthen its crypto exchange infrastructure. Both cases underline how Chinese companies increasingly rely on overseas partnerships to access specialized expertise.
If Venom technology is integrated into China's financial sector, observers see potential applications beyond payments. Supply chain financing, where small and medium-sized enterprises struggle to secure bank trust, could benefit from blockchain-based data transparency.
Still, many details remain unclear. Sources suggest that a potential acquisition might not be finalized until late 2025 or early 2026. Venom declined to comment, citing confidentiality.
For industry watchers, this is a story far beyond the deal itself. It could provide a blueprint for how Chinese institutions adopt foreign technologies to meet domestic policy goals while competing globally in digital finance.
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