Hong Kong’s Cyberport: A Thriving Hub for Web3 Companies and Blockchain Innovation

Hong Kong’s Cyberport: A Thriving Hub for Web3 Companies and Blockchain Innovation

Hong Kong’s Cyberport, the leading technology hub of the city, has experienced remarkable growth in the past year, attracting more than 150 companies operating in the web3 space. In a blog post by Hong Kong Financial Secretary Paul Chan on June 18, it was revealed that Cyberport’s ecosystem currently hosts over 1,900 community enterprises, with a cumulative financing figure exceeding 35.7 billion yuan ($4.98 billion).

The hub’s success is further underscored by its extensive portfolio of over 480 intellectual property projects and its role in nurturing the growth of several prosperous ventures, including six “unicorns” that have emerged from within its community.

Cyberport is home to prominent firms in the web3 space, such as Hashkey Group, a licensed cryptocurrency exchange; Animoca Brands, a web3 venture capital and game developer; and Consensys, the Ethereum software company responsible for the widely-used crypto wallet MetaMask.

Recognizing the immense potential of web3 technologies, the Hong Kong government has allocated 50 million yuan ($6.9 million) from its financial budget to support Cyberport’s initiatives. This funding aims to accelerate research and development efforts and foster innovative applications within the third-generation internet powered by blockchain technology.

Cyberport has also made significant advancements in virtual asset trading and other sectors. In 2022, one of Cyberport’s companies became the second licensed virtual asset trading platform approved by the Securities and Futures Commission in Hong Kong.

Moreover, several technology-driven startups incubated by Cyberport have successfully launched initial public offerings (IPOs), including a smart logistics company and a travel platform.

Alongside Cyberport’s growth, Hong Kong is witnessing the emergence of blockchain-based security products, offering investors diverse opportunities to participate in the thriving web3 industry of the city.

Recently, UBS and the Bank of China’s Hong Kong-based investment arm unveiled a blockchain-based structured note, marking the city’s first private security product on a public blockchain. This achievement follows the successful launch of a government-backed green bond in February, which utilized a private blockchain platform provided by Goldman Sachs.

These products demonstrate a broader interest in developing Hong Kong’s web3 industry beyond cryptocurrencies, which have been the primary focus of regulatory efforts.

On June 1, the city introduced licensing regulations for cryptocurrency trading platforms catering to retail investors, ensuring a regulated and secure environment for investors to participate in this growing sector.