Opening remarks
Entrepreneurship Web3, discussing every Wednesday!
(Entrepreneurship Web3.0) is a Chinese Web3.0 entrepreneur interview program initiated by Mankun Law Firm. Every Wednesday evening, we invite industry leaders, frontline institutions, and well-known entrepreneurs to share their experiences, hoping to support the compliant development of China's Web3.0 industry through positive voices, rational discussions, and experience sharing.
The Web3 track is surging; how can Hong Kong leverage its policy and technical advantages to become a global virtual asset center? How can traditional businesses embrace Web3 through RWA and cross-border payments? In this episode (Entrepreneurship Web3.0), lawyer Niu Xiaojing from Mankun Law Firm talks with Vivian, the marketing director of BlockbeatHK. From the vision of the value internet to BlockbeatHK's practices in Hong Kong, Vivian reveals how Web3 empowers the real economy through her 7 years of industry experience, providing entrepreneurs with exclusive insights on technology and compliance!
(The audio transcription text record has been processed by AI and may contain omissions and errors.)
Welcome this episode's guest; please introduce yourself!
Vivian: Thank you very much to the Mankun Law Firm for the invitation! Dear audience, I am Vivian from BlockbeatHK. I entered the blockchain industry in early 2018, having previously worked at multinational companies like Siemens and IBM, and later at a publicly listed domestic company developing core lending systems for banks. After entering the blockchain space, I started at a technical service company, and then joined a trading platform that obtained a VATP license under sandbox regulation, serving as the business director.
In 2021, I joined BlockbeatHK and collaborated with founder and CEO Harrit. She is a female entrepreneur I greatly admire, and we have known each other for many years. After joining, I hope to work with the team to utilize decentralized technology to build an interconnected value internet.
BlockbeatHK, formally known as Hong Kong Blockchain Innovation Technology Co., Ltd., is a comprehensive Web3 solution provider based in Hong Kong, serving the global market. Our core team has been involved in the globally recognized cross-chain project Cosmos since 2017, being core contributors to its ecosystem and IBC cross-chain communication protocol, and builders of several national and global blockchain infrastructures. Our business is divided into several parts:
1. Providing strategic technical support for licensed financial institutions (such as banks and trading platforms) offering virtual asset services.
2. Providing technical support for mainstream public chain communities such as Cosmos, EVM, Solana, etc., including underlying chains, protocol layers, wallets, and node services.
3. Provide integrated RWA solutions, serve the real economy, and facilitate the efficient flow of global assets.
4. Building platform-based products, such as the multi-chain API service platform Avatar, Web3 payment product Spark Pay, cross-chain browser IOB Scan, and digital marketing platform.
5. Relying on Hong Kong's trust service license, providing compliant virtual asset custody and trust services.
I serve as the marketing director, responsible for brand building, promotion, customer expansion, and maintaining partnerships. I hope to discuss BlockbeatHK's practices with everyone today!
Q1: How does BlockbeatHK position itself? What keywords summarize its core values?
Niu Xiaojing: BlockbeatHK covers mainstream tracks in Web3, from licensed institutions to public chains, wallets, and custody, with strong capabilities! Can you summarize the company's positioning and core value again?
Vivian: Thank you, Lawyer Niu! Our positioning is as a comprehensive Web3 solution provider based in Hong Kong and serving globally. The core values can be summarized in three words: technology-driven, compliance innovation, global connectivity. We empower businesses through blockchain technology to build a value internet, serving the real economy. Whether it's building crypto capabilities for licensed institutions, providing technical support for public chain ecosystems, or RWA and payment solutions, we focus on technology, emphasize compliance, and ensure interconnectivity in the global market.
Q2: Compared to Web2, what does the value internet of Web3 mean for businesses and users?
Vivian: The value internet utilizes decentralized technology to achieve the transfer, exchange, and storage of value, which differs from the centralized databases of Web2.0 and is often viewed as synonymous with Web3.0. It brings several values to businesses and users:
1. Transparency and trust: Distributed ledger technology provides high transparency and trust, while smart contracts enable efficient cooperation and automated execution.
2. User control: Users have absolute control over their data and assets, with decentralized identity (DID) and economic incentive systems providing more autonomy.
3. Efficient collaboration: Blockchain makes digital asset transactions more secure, transparent, and traceable, while smart contracts enhance circulation efficiency.
From Web1.0 (read-only, users passively accept content) to Web2.0 (users create and share content), and then to Web3.0 (decentralization and openness), we are gradually transforming. BlockbeatHK has been deeply engaged in blockchain since 2016, participating in the development of Cosmos and IBC cross-chain protocols, accumulating capabilities in cross-chain interoperability, NFTs, privacy computing, and more.
For instance, cross-chain technology allows assets to flow between different chains, NFTs support complex data on-chain for digital art, copyright, and virtual items, and privacy computing ensures data sharing while protecting privacy. These technologies drive the formation of the value internet, enhance control over digital assets for businesses and users, and promote the prosperity of the creator economy.
Niu Xiaojing: From Web1 to Web3.0, the transparency and user control of the value internet indeed represent disruptive changes.
Q3: How do traditional companies transition to Web3, and what challenges do they face?
Niu Xiaojing: At Mankun Law Firm, we often encounter traditional companies wanting to embrace Web3. Has BlockbeatHK served non-Web3 native enterprises? What challenges do traditional companies face in transitioning to Web3?
Vivian: Most of our B-end clients are not Web3 native companies but traditional or internet companies involved in digital art, copyright, membership management, ticketing, cross-border payments, RWA, supply chain finance, and more. Challenges in transitioning to Web3 include:
1. Policy differences: Different countries have varying crypto regulations, with insufficient policy stability, requiring companies to adapt to compliance requirements in multiple locations.
2. Security concerns: Companies worry about blockchain systems being attacked and have doubts about technological security.
3. Public acceptance: The acceptance level of virtual assets varies by region, affecting promotion.
4. Team cognition: Companies have limited understanding of blockchain and require training or external support.
Technology is not the biggest barrier. Based on years of experience, we have packaged mature solutions. For example, the Avatar API platform and Spark Pay payment tool allow teams without a blockchain foundation to quickly integrate. The RWA solution combines the demands of the real economy, providing data on-chain and compliance support.
We collaborate with institutions like Mankun Law Firm to ensure that our business complies with local regulations, helping companies transition smoothly.
Niu Xiaojing: It turns out that technology is not the main barrier; policy and awareness are more crucial.
Q4: What are BlockbeatHK's core products? What are the features of Spark Pay?
Vivian: I will first give an overall introduction to our products and then focus on Spark Pay. Our products cover underlying chain development, cross-chain services, application layer tools, mainly including:
1. Avatar: A multi-chain API service platform that supports enterprises with one-click access to public chains such as Cosmos, EVM, and Solana, providing NFT management, cross-chain services, smart contract management, node services, and has served over 43,400 enterprises.
2. W3 Box: A blockchain service for brand and private domain traffic management based on a multi-chain digital marketing tool, such as providing marketing activities for the Swiss skincare brand La Prairie.
3. IOB Scan: A cross-chain explorer providing unified accounts, multi-chain asset queries, and information tracking for blockchains using the IBC protocol, with a user-friendly interface.
4. Trust services: Providing compliant virtual asset custody based on Hong Kong trust licenses, utilizing multi-party secure computing, hardware encryption machines, and smart contracts.
5. Public chain support: Providing full-stack services such as demand analysis, architecture design, underlying chain development, and wallet deployment for licensed institutions and public chain ecosystems.
Let’s focus on Spark Pay, a Web3 cross-border payment solution based on abstract accounts (ERC-4337), zero-knowledge proofs, and privacy computing, designed as an enterprise-level payment tool, also functioning as a crypto wallet, serving both the Hong Kong and global markets (excluding countries on the FATF blacklist and specific regions like mainland China and the United States). Features include:
1. Decentralized security: Merchants manage assets independently without needing to entrust them to BlockbeatHK. Supports social password login and email recovery, compatible with mainstream wallets like Coinbase, Binance, and OKX.
2. Fast and low-cost: Achieving T+0 second arrival based on blockchain, with rates only a fraction of a percent (lower than the traditional payment of 1%-5%), merchant-side charges, and no fees for users.
3. API integration: Through API documentation, merchants can integrate into APP or H5, supporting mainstream networks and currencies, providing reconciliation, reporting, and intelligent analysis.
4. On-chain revenue sharing: Smart contracts automatically distribute revenue, allowing e-commerce or trading platforms to allocate income proportionally.
5. Diverse scenarios: The 2.0 version supports online payments, POS payments (offline collections), bill payments, QR code scanning, covering e-commerce, physical stores, creator subscriptions, salary disbursement, etc.
For instance, physical stores in Hong Kong have already implemented POS payments, allowing consumers to scan QR codes to pay with cryptocurrency, eliminating exchange hassles and ensuring safety and efficiency.
Niu Xiaojing: The scenarios for Spark Pay are exciting; scanning codes to pay with cryptocurrency in physical stores is a new global payment method.
Q5: How does Spark Pay balance convenience and security?
Vivian: Convenience and security do present a contradiction. Spark Pay manages assets through private keys at the core to ensure security, but uses social password login and email recovery to align with Web2 user habits. Specific measures include:
1. Multi-factor verification: Social passwords are only used for account login; transfers require private key pairing, combined with multi-party security verification.
2. Technical encapsulation: Merchants do not need to manage private keys or gas tokens; the system handles it automatically, reducing the risk of operational errors.
3. Compliance support: Based on ERC-4337 and privacy computing, complying with Hong Kong regulatory requirements.
Merchants use login methods more akin to Web2 accounts, but the underlying security is uncompromised. Interested merchants can contact us to learn about technical details.
Q6: How does BlockbeatHK's RWA solution land? What are the cases?
Vivian: RWA is a bridge connecting the digital and real worlds. BlockbeatHK provides a one-stop RWA solution based on blockchain, serving both the Hong Kong and global markets, with clients including commodity managers and renewable energy facility operators (like solar power plants, power batteries, and energy storage). The solutions are divided into two ends:
1. Asset management system: Integrates data on power generation, income, equipment, etc., onto the national-level blockchain infrastructure, ensuring authenticity and security. Supports cross-verification with IoT devices, providing a visual dashboard to enhance operational transparency and investor confidence.
2. Tokenized issuance and management: One-click issuance of tokens based on underlying assets (such as private equity and debt), supporting EVM chains (like HashKey Chain). Provides permission management, allowing investors to view holdings, returns, maturity dates, etc., mostly fixed income products, easy to understand and calculate.
Implementation requires multi-party collaboration, including domestic/Hong Kong law firms (like Mankun), accounting firms, tax companies, and asset rating agencies. If issued in the form of tokenized funds, approval from Hong Kong's 9th license fund companies, custodial banks, and the 1st license underwriting institutions is required; if in the form of bonds, trust companies and underwriting institutions are needed. Domestic asset cross-border financing requires filing with the State Administration of Foreign Exchange, the National Development and Reform Commission, or local governments, while compliance with the Securities and Futures Commission is required on the Hong Kong side.
For example, we provide data on-chain and tokenized issuance services for solar power plants, with transparent data enhancing investor trust and fixed income design facilitating broker management. The advantages of RWA include data confirmation, low subscription thresholds, and 24/7 rapid settlement, with future prospects for compliant secondary market trading.
Niu Xiaojing: Data on-chain and multi-party collaboration are key, and landing cases are eye-catching.
Q7: What is the current status and challenges of RWA?
Vivian: RWA has rapidly developed since 2023, with cases such as Ant's cross-border financing and Hong Kong's battery swap stations being implemented. Asset types have expanded from financial assets to income rights, physical and intangible assets, with traditional institutions actively participating, and the market outlook is optimistic. Challenges include:
1. Regulatory complexity: Cross-border financing must comply with regulations of multiple countries, with Hong Kong emphasizing "same assets, same regulation."
2. Due diligence costs: The complexity of assets increases broker, law firm, and audit fees, starting from millions.
3. Investor thresholds: Except for Huaxia Fund (targeting retail), most RWAs are aimed at qualified investors (Hong Kong standard: 8 million HKD in financial assets or 40 million HKD in fixed assets).
4. Secondary market restrictions: Compliant trading platforms have not yet supported RWA secondary trading, and liquidity needs improvement.
We reduce costs through data on-chain and smart contracts, collaborate with Mankun Law Firm and licensed institutions to ensure compliance, customize solutions based on financing scale, and negotiate installment payments to ease the burden on businesses.
Q8: What are the differences between RWA and ICO? How about the issuance cost?
Vivian: RWA and ICO are fundamentally different. ICO is a crowdfunding model from 2017-18, where project parties issue tokens based on white papers to the public to maintain network stability or as gas fees, easily involving illegal fundraising, which has been banned domestically, and is strictly regulated in Hong Kong. RWA anchors real assets (such as income rights and debt rights), issues through compliance processes, targets qualified investors, requires legal documents, asset audits, and regulatory filings, has complex transaction structures, and tokens often have securities attributes, regulated by the Securities and Futures Commission.
The issuance cost is related to the scale of financing and asset complexity, starting from millions, including the due diligence of law firms, broker commissions, audit fees, and technical service fees. The larger the financing scale, the more reasonable the cost share, and installment payment can be negotiated. Broker promotion costs vary by investor group, and large financings (100 million to several hundred million) are more attractive.
Q9: Besides renewable energy, what other industries are suitable for RWA? Can individuals issue?
Vivian: The Hong Kong regulator listed four asset categories suitable for RWA in 2023: fixed income, liquidity protocols, green finance, and supply chain finance. Actual cases mostly involve renewable energy (solar power plants, energy storage) and park income rights, due to data being chainable and stable returns. Other areas (such as digital art and copyright) can also be explored, as the RWA framework is flexible and requires transparent data and compliance support.
Theoretically, individual issuance is feasible but requires a large asset scale, a stable operating model, and sufficient funds. The process is as complex as that for companies, with high costs, suitable for listed companies or large institutions. Companies building public chains to issue RWA tokens to individuals need approval from Hong Kong regulators; otherwise, it may involve illegal ICO.
Niu Xiaojing: Compliance and scale are hard thresholds.
Q10: What supports and challenges does Hong Kong's virtual asset regulation provide for Web3 companies?
Vivian: Since Hong Kong's virtual asset development policy declaration was released in October 2022, a comprehensive regulatory system has been established:
1. Issuing 10 VATP licenses, HashKey Exchange has already served retail users.
2. In 2024, launch virtual asset ETFs, a regulatory sandbox (covering fixed income, green finance, and four major categories), and a draft regulation for stablecoins.
3. In February 2025, a roadmap centered on "access, security, products, infrastructure, and connections" will be released, and in April, guidelines for staking business will be issued.
Support:
Hong Kong, as a trade center and financial hub, possesses vast offshore capital, a mature financial system, and clear regulatory policies.
Attracting financial technology talent from the mainland and globally to strengthen the innovation ecosystem.
"Same assets, same regulation" principle enhances investor trust and attracts "old money" to enter.
Challenges:
Compliance costs are high; companies need to thoroughly understand regulations and regularly track policy changes.
Geopolitical and global economic fragmentation (such as the China-US trade war) affects global layouts.
BlockbeatHK benefits from Hong Kong's open policies, strictly adhering to data protection, anti-money laundering, and customer due diligence requirements, engaging in dialogue with regulators and Mankun Law Firm to ensure compliance. This enhances our competitiveness in the international market and provides trust guarantees to our clients.
Niu Xiaojing: Hong Kong's regulatory system is both strict and forward-looking, with opportunities and challenges coexisting.
Q11: Finally, please share a subjective insight!
Niu Xiaojing: Finally, please share a subjective insight, which can be about Web3 or life, the more subjective the better!
Vivian: The combination of AI and blockchain will profoundly change human production and life. AI has already integrated into daily life, but the impact of blockchain on centralized systems has not fully manifested yet. As a practitioner, I firmly believe that the combination and balance of decentralization and centralization will reshape production relationships, leading to more efficient collaboration methods.
Web3 and AI are the two major trends of the future; embracing them means walking on the path of the future!
Niu Xiaojing: The combination of AI and blockchain encompasses the two major hotspots of the future. Web3 practitioners are indeed walking the path of the future!
Entrepreneurship is not easy, but your story must be very cool!
Welcome to join Mankun's "Entrepreneurship Web3 column" and inject real and vibrant power into China's Web3.
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Author of this article: Mankun Brand Department