Philippine company Regent Blockchain Group, Ltd., has raised up to $4 million in a joint venture deal with US-based diversified holding company PHI Group, Inc.
The JV firm to be created will engage in offshore financial center and blockchain businesses, including development of apps, to launch ICOs and cryptocurrency exchanges. It will be located in the Cagayan Economic Zone (CEZA) where a local “fintech city” will soon rise to accomodate fintech companies that are into crypto and blockchain businesses.
Based on the agreement, PHI Group’s $4 million investment will secure it a 51 per cent ownership and management rights of the JV company.
PHI Group is a diversified holding company focused on mergers and acquisitions and investments in natural resources, energy, agriculture and special situations. The company also provides M&A and consulting services through its wholly owned subsidiary, PHI Capital Holdings, Inc.
Also in the deal, Regent Blockchain is tasked to allocate a sublicense of the Financial Technology Solutions and Offshore Virtual Currency (FTSOV) License from CEZA, the official agency of the Philippine government which has the responsibility to issue such license.
Regent Blockchain Group chairman and CEO Allen Wu, and PHI Group chairman and CEO Henry Fahman, both expressed optimism in the success of the joint venture company.
“We look forward to working with PHI Group, its Vietnam-based partner Fintech Green Investment JSC and other international participants to fast-track the development of the offshore financial center and blockchain businesses and believe that these could become a multi-billion dollar business in the next few years,”
Wu said.
Only recently, CEZA has issued its first FTSOVC license, granting it to Hong Kong-based blockchain solutions firm Golden Millennial Quickpay (GMQ).
GMQ is expected to hire around 500 personnel, particularly blockchain programmers even as it plans to bring its foreign employees for technical support, and to give training on blockchain technology.
Besides fintech, CEZA believes the other best business opportunities in the ecozone are ripe in the following ventures: IT development, BPOs, sports, amusement and recreation, medical tourism, integrated resorts, casino gaming operations, ship building and repair, power and water plant development, logistics and cargo handling, hotel and restaurants, duty-free shops and outlets, factories and manufacturing, and agricultural production, among others.
Featured image via Pixabay
