MultiMetaVerse Holdings Limited a leading animation and entertainment company for young consumers in China, announced that it has agreed with Zhenghe Holding Co., Limited to establish a joint venture to invest in and trade alternative assets with the assistance of quantitative investment algorithms to be jointly developed by the parties. Under the Agreement, Zhenghe will own 80% of the new Joint Venture and be responsible for its daily management and operation. MMV will hold a 20% stake and have the right to appoint one director to the Joint Venture’s board. Zhenghe was founded in 2020 in Hong Kong, China as a blockchain technology service provider, and has expanded and established its Central and Southeast Asia arm. Furthermore, it has built a quantitative trading team that develops trading strategies, algorithms, and the trading system.
What is a Joint Venture?
In a joint venture, multiple people or organizations work together to build a business or project to make a profit while dividing up the risks. Two or more legal entities must be involved in the joint venture for it to be valid.
Industry Comments
Yiran Xu, Chairman and CEO of MMV commented, “We are pleased to be embarking on this journey to work with the Zhenghe team in this brand new fintech venture. We are deeply impressed with Zhenghe team’s insights and acumen in investment and trading. Both MMV and Zhenghe have been investing in AI applications, and we trust such research and development could gradually become the cornerstone intellectual property of the new Joint Venture. Depending on the development of the Joint Venture, we may seek to increase our stake in it.”
Wenjin Li, Director and CEO of Zhenghe commented, “We’re excited to be partnering with MMV. In today’s changing economic and political environment, we believe that alternative assets, such as cryptocurrency and gold, are better investment targets than traditional equity and debt instruments. With our quantitative trading system plus the algorithm technology we plan to develop together with MMV, our vision is to develop into a next-generation fintech company featuring alternative assets.”
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