Chinese Bank Partially Owned by the Government Invests in Nervos STO

The Nervos Network security token offering (STO) has aimed to start on Oct. 16, to raise an undisclosed amount within two weeks via theCoinList platform.

Kevin Wang, the co-founder of the Nervos project said that China Merchants Bank International (CMBI) based in Hong Kong and a subsidiary of China Merchants Bank has committed to contribute to the public STO.

7 of the top 10 shareholders of CMBI are corporations partially or fully owned by the Chinese government although it is not a state-owned bank, it suggests that the Chinese government is indirectly investing in the STO.

Reported by the Wall Street Journal, diplomatic tensions regarding alleged sanctions violations could shut out Chinese banks from the dollar economy. Certain sanctioned Iranian banks are already shut out, it was suggested to be part of the reason why CMBI would be investing in Nervos to build a new investment bank and to have an open platform.  

Wang shed a light on what the bank’s plans might be: 

“CMBI is a strategic partner, both in terms of financial plans and other types of applications they want to utilize for the blockchain. … We want to make sure they can utilize the infrastructure.” 

Polychain Capital stated that it will contribute $5.7 million to the offering, along with the investments made previously. Joseph Eagan, President of Polychain Capital mentioned that it is still too early to decide whether his hedge fund will be running a node or mining cryptocurrency for the Nervos project.  

Image via Shutterstock