Blockchain or distributed ledger technology (DLT) firms have been dominating Hong Kong’s startup sector. The report by the Financial Services and Treasury Bureau recorded that blockchain corporations valued for 39% of the 57 fintech companies that set up shop in Hong Kong in 2019. The rise in blockchain firms comes after the Hong Kong government set out crypto-friendly policies that have made blockchain a key focus. Cryptocurrency custodians and trade finance firms accounted for 14% and 9% of the region’s blockchain startups, respectively.

Hong Kong’s treasury also records an expedition in the embrace of fintech and blockchain technologies amid the coronavirus breakout, with the pandemic highlighting many of the efficiency savings and utilities offered by distributed ledger technology.