The Chinese arm of professional services firm PricewaterhouseCoopers (PwC) has announced a new partnership with technology company Xalts to explore tokenization and the concept of programmable assets.
According to a joint statement, the partnership will see PwC lean on Xalts’ expertise in an effort to launch its wealth management solution. PwC’s in-house technology team will be able to create a tailor-made solution to connect off-chain systems with blockchain technology-based solutions using no-code workflows and an extensive smart contract library.
“As the velocity of money accelerates with real-time payments, stablecoins and CBDCs, the biggest challenges to widespread adoption will be disjointed operational processes and systems,” said Ashutosh Goel, CEO of Xalts. “Our infrastructure solves this problem without requiring significant upfront costs and time commitment from customers.”
Given the blanket ban on digital assets in mainland China, it appears that PwC China will focus most of its attention on Hong Kong, a region with a much friendlier attitude towards digital assets. However, China is not completely opposed to blockchain, but local authorities view applications in the financial sector with skepticism.
PwC’s interest in tokenization follows the Hong Kong Monetary Authority’s (HKMA) progress with Project Ensemble, the central bank’s large-scale digital currency (CBDC) pilot. The pilot involves attempts by the HKMA to offset interbank deposits with tokenized deposits, with executives touting the project as providing “new impetus” to the local financial sector.
“This agreement enables PwC and Xalts to explore business opportunities within the blockchain tokenization space,” said PwC China Partner Peter Brewin. “PwC sees enormous potential for programmable assets to deliver key innovations for the financial services industry, including payments and finance.”
A selection of emerging technologies
PwC has set its sights on embracing emerging technologies to improve services to its clients. Back in 2019, the professional services company rolled out a blockchain-based audit tool to help companies record financial transactions.
The company is also moving toward full integration with artificial intelligence (AI), forging new high-profile partnerships along the way. Through a deal with Microsoft (NASDAQ: MSFT), PwC will establish an AI Excellence center in Saudi Arabia to improve adoption rates and equip residents with the necessary AI skills.
Watch: Tim Draper Talks Tokenization with Kurt Wuckert Jr.