Chinese fintech eyes Venom blockchain in push for digital finance modernization

Chinese media report that one of the country’s leading fintech companies is negotiating the acquisition of technological solutions from the Abu Dhabi–based Venom Foundation.

Sources familiar with the matter say the goal is to integrate Venom’s blockchain infrastructure into China’s expanding digital finance systems.

The news comes as Beijing continues to emphasize the modernization of financial services. In May, the People’s Bank of China and other regulators released “Guiding Opinion on Financial Support for New Industrialization”, calling on financial institutions to deploy technologies such as blockchain and artificial intelligence to serve the real economy more effectively.

Venom (VENOM), a Layer-0 blockchain protocol, has recently attracted attention after stress testing its upgraded architecture, demonstrating the ability to process around 150,000 transactions per second. For Chinese institutions, this could be valuable in areas ranging from cross-border settlements to carbon credit tracking.

A person close to the talks noted that Venom’s capacity to operate across multiple regulatory frameworks is one of its strongest selling points. For Chinese enterprises pursuing international expansion under the Belt and Road Initiative, access to such infrastructure could help reduce dependence on dollar-based settlement corridors while offering tools to issue regulated digital assets.

This would not be the first time Chinese firms have looked abroad for digital finance expertise. In June 2025, Hong Kong-based crypto platform OSL saw its shares surge after announcing a takeover deal with Canadian fintech BC Technology. Analysts at the time described the move as part of a broader trend of Chinese companies securing overseas technology to meet domestic policy goals.

If a Venom deal goes through, implementation may extend beyond traditional banking. Insiders mention areas like supply chain financing, where blockchain could help address long-standing distrust between banks and small businesses by ensuring transparent, tamper-proof data on receivables. Another possible application is in green finance, as authorities seek verifiable tools for measuring carbon emissions and environmental performance.

Negotiations are still at an early stage, with no official comment from either side. Market observers suggest the deal could close between late 2025 and early 2026. For now, the talks highlight how China’s financial sector is aligning corporate strategy with state policy by looking to external partners for technical expertise.