Like in all parts of the world, decentralized finance (DeFi) has increasingly gained a reputation in China as well. Earlier the Chinese Government had imposed a permanent ban on the use of Initial Coin Offering (ICOs). It is said that the ban on ICOs has subsequently paved the way for DeFi market in the Chinese crypto industry. Resultantly, China’s DeFi industry has transformed into a multi-billion dollar industry competing with other major DeFi user countries.
The number of DeFi projects are rapidly increasing in the country. This has led the Chinese Government is also in the process of developing its very own DeFi platforms. Currently, there are various west-based DeFi projects successfully operating in China. Uniswap, Makerdao, and Compound are three of the highly demanded DeFi platforms in China.
Total value locked (TVL) for current DeFi status in China shows that over $10.8 billion investments were brought into DeFi. However, the statistics also show that the dominant DeFi platform in China is none other than Uniswap.
James Gillingham, founder of Chinese Finxflo explained on 1st October that China is developing its own DeFi platform. In an interview with Forkast, he explained that China intends to attract DeFi investment within the country. Such progress couldn’t have been possible if the Chinese Government had not banned ICOs in the year 2017.
A report has been published by CoinDesk regarding the performance of DeFi projects in China. The report suggests that many popular DeFi projects got too much attention from Chinese investors in 2020. These projects included Uniswap, Kyber Network, Makerdao, Loopring, and Compound, etc.
The report also lauded Chinese investors who helped the DeFi market to grow in China even though COVID-19 was rapidly increasing. The continuous growth of DeFi projects in China is evident yet China is looking forward to introducing its DeFi platform.
Similarly, the tokenized crypto-assets industry is also flourishing in the country. Stablecoins reports that the tokenized assets, Tether (USDT) are gaining huge popularity amongst Chinese investors. Though there are various other tokenized assets, yet Tether remains at the top on the list.
China’s exceptional growth in DeFi sector during the wake of Covid-19 is considered vital for strengthening the confidence of investors.