Hangzhou-backed blockchain investor Grandshores appoints China ‘bitcoin evangelist’ as co-chief executive

Hong Kong-listed company Grandshores Technology Group, a blockchain investor tied to a 10 billion yuan (US$1.46 billion) global blockchain fund backed by the government of China’s Hangzhou municipality, said late on Monday it had appointed China’s “bitcoin evangelist”, Li Xiaolai, as its co-chief executive and executive director.

The company said in a stock exchange announcement that Li, known for founding Bitfund, a bitcoin-focused venture capital fund in China that at its peak had 3.8 billion yuan in assets under management, will lead various projects at Grandshores. One of these will be a “stablecoin” pegged to the yen. A stablecoin is a cryptocurrency pegged to a stable asset, such as gold or a hard currency.

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“Mr Li will mainly be responsible for various projects in which the company is taking part, including the establishment of a stable digital currency system (focusing on mainstream international currencies),” the company said in its announcement.

Grandshores is aiming to launch the yen stablecoin by February 2019, sources close to the company said on Tuesday. Its chairman, Yao Yongjie, has previously said it would also explore stablecoins pegged to the Hong Kong and Australian dollars.

Globally, there is a growing demand within the cryptocurrency community for stablecoins, which are being used for the settlement of cryptocurrency-denominated trades. Traders prefer stablecoins to fiat currencies because of their faster settlement time. Stablecoins are also often viewed as providing price stability, especially during periods of cryptocurrency market volatility.