- IVD Medical invests $19M in Ethereum to power its healthcare asset tokenization platform.
- Ethereum will be used for on-chain ownership, revenue distribution, and stablecoin backing.
- China tightens stablecoin regulations while advancing its digital yuan for state control.
IVD Medical, a Hong Kong-based company, has recently invested in Ether. The company plans to tokenize healthcare assets via its platform, ivd.xyz. IVD Medical’s decision to invest $19 million in Ethereum is central to its plan to use blockchain technology for asset tokenization.
The company will use Ethereum to implement several functionalities, including on-chain ownership verification, revenue distribution, and serving as the underlying platform for its planned IVDD stablecoin.
Besides tokenizing on Ethereum, IVD intends to utilize its staking, re-staking, and on-chain derivatives functionality to enhance liquidity and offer security against market fluctuations. This transition makes Ethereum the core component of IVD’s operations, serving as an example of Hong Kong’s shift toward decentralized finance (DeFi) and blockchain technology.
The partnership between IVD and HashKey Group, which is a leading local crypto exchange operator, is another indication that Hong Kong is a digital asset innovation hub.
In addition, Ethereum was preferred as the most popular smart contract platform with high liquidity and institutional backing. Currently, more than 36 million ETH, or almost 30% of the circulating supply, is in staking contracts, indicating high demand for yields with reduced liquidity. This Ethereum staking explosion and increasing crypto treasuries have contributed to the price boost, with Ethereum up 163% since April to $3,909 at press time.
China Tightens Restrictions on Stablecoins
Meanwhile, China has intensified its crackdown on stablecoins. Recently, Chinese regulators ordered local companies to stop marketing stablecoins, cancel related events, and suspend publications dedicated to these digital assets. This crackdown also follows concerns that were raised about stablecoin use in illegal activities like fraud and unauthorized fundraising.
Despite these tightened regulations, China has continued to research a national digital currency, the digital yuan, to control digital financial structures within the state. While decentralized cryptocurrency, such as Bitcoin and Ethereum, is still unregulated in China, the government is pushing towards a state-controlled digital finance.
Related: Standard Chartered Launches Stablecoin Venture in Hong Kong
Diverging Strategies: Hong Kong vs. Mainland China
The contrast between Hong Kong’s and mainland China’s approach towards cryptocurrency is clear. Hong Kong is also becoming more friendly to decentralized networks, such as Ethereum and stablecoins, encouraging innovation and offering businesses a chance to tap into blockchain-based financial tools. Additionally, Hong Kong is one of the most advanced regions in adopting crypto because the regulatory system is much more open to experimentation with digital assets.
On the other hand, China is highly regulated regarding stablecoins as it is eager to ensure tight control over the financial system. Overall, the government’s tendency to issue state-backed digital currencies such as the digital yuan indicates its conservative attitude towards decentralized finance. As Hong Kong proceeds to integrate Ethereum and other blockchain applications into its financial applications, China remains focused on regulatory control of digital finance.
