According to a report from Chinese news aggregator Toutiao, one of the country’s largest fintech players is negotiating to acquire technological infrastructure from Abu Dhabi-based Venom Foundation. Sources familiar with the situation indicate that the deal could be part of a broader strategy to strengthen China’s position in the digital finance market and create alternative channels for international settlements.
The potential acquisition echoes the recent deal between Hong Kong-listed OSL Group and Canada’s Banxa, completed in June this year. Following the announcement of the Banxa crypto infrastructure purchase, OSL shares surged 10%, reaching a four-year high. OSL’s CFO Ivan Wong stated at the time that the company would continue global expansion through acquisitions and licensing, emphasizing the importance of international presence for developing cross-border payments. Similar logic may be driving Chinese companies’ interest in Venom.
Venom is a Layer-0 blockchain platform designed with corporate sector requirements and government regulation in mind. According to recent stress tests conducted in a closed network, the system can process up to 150,000 transactions per second with finalization within three seconds. The platform was initially designed with built-in regulatory compliance mechanisms, including support for KYC and AML procedures, making it attractive to financial institutions operating in strictly regulated jurisdictions.
Chinese companies’ interest in such technologies is no coincidence. In May this year, the People’s Bank of China, together with other regulators, published the “Guiding Opinion on Financial Support for New Industrialization,” calling on financial institutions to more actively implement blockchain and artificial intelligence to modernize services for the real economy. Particular attention is being paid to developing infrastructure for the digital yuan and creating stablecoins pegged to the national currency, which could accelerate international settlements and reduce dependence on dollar corridors.
Hong Kong Financial Secretary Paul Chan previously noted that stablecoins could offer a cost-effective alternative to traditional financial systems and have the potential for revolutionary changes in payments and capital market operations, including cross-border payments. In this context, Venom’s technological capabilities for creating regulated digital assets could prove valuable for implementing China’s ambitious plans in digital finance.
If the deal goes through, which sources estimate could happen in late 2025 to early 2026, it will be another example of how Chinese companies use foreign technological assets to achieve domestic strategic goals. This approach has already demonstrated its effectiveness in the case of OSL and other market players who have successfully integrated international solutions into the local financial ecosystem.
