Yunfeng Financial Group, supported by Alibaba’s Jack Ma, invests in ether cryptocurrency as part of its reserve assets amid Hong Kong’s digital asset initiative. The company purchased 10,000 ether for US$44 million, aiming to utilize ether for RWA tokenisation and explore its applications in the insurance business.

Yunfeng’s revenue primarily comes from its insurance business, generating nearly HK$2.8 billion last year with a net profit of HK$471 million. The Hong Kong-listed company fell more than 5% in shares on Wednesday morning. Yunfeng aims to increase investments in digital currencies and explore RWA tokenisation as part of its expansion into Web3.

Yunfeng, a subsidiary of Yunfeng Financial Holdings, is 29.85% owned by Jack Ma and 70.15% by Yu Feng. The company plans to upgrade its securities subsidiaries’ licenses to offer virtual asset trading services and manage portfolios with digital assets. The move aligns with the rising cryptocurrency prices and the growing trend of digital asset initiatives in Hong Kong.

Ant Group, Alibaba’s fintech affiliate, applies for a stablecoin issuer license in Hong Kong, while JD.com’s subsidiary pursues a stablecoin license. Both companies are promoting blockchain platforms for RWA tokenisation projects in the city. Hong Kong’s regulatory frameworks attract more mainland Chinese companies to establish digital asset initiatives in the region.

Read more at Yahoo Finance: Yunfeng Financial invests US$44 million in ether amid Hong Kong’s virtual asset push