China is leading the world in the number of blockchain-related projects, with 263 in progress, according to a report by the state-run media outlet China Daily on April 2.

The speed and effort of companies in embracing blockchain technology are startling. Citing data from the Beijing-based data service provider Blockdata, the report pointed out there were 263 blockchain projects in China as of last November, which accounted for about 25 percent of the global total.

Blockchain technology is widely used across a range of industries in China, including financial services, public services, healthcare, supply chains, smart manufacturing and logistics. In Deloitte’s 2018 global blockchain survey, nearly 50 percent of respondents in China said the technology was already being used in their organization, compared with only 14 percent in the U.S.

Li Qilei, CTO of blockchain platform developer Hyperchain, said the financial industry is now the biggest user of blockchain technology, particularly in asset securitization for banks and brokers. In collaboration with China Zheshang Bank, Hyperchain has reportedly developed an account receivable platform with the financing scale reaching hundreds of billions of yuan.

Like Hyperchain, half of the 615 blockchain companies in China are working on the adoption of blockchain tech in the financial industry, the report read. Apart from blockchain startups, internet giants like Baidu, Alibaba and Tencent are also at the forefront of blockchain innovation with many blockchain initiatives in their businesses.

It is notable that China also holds the most blockchain patent applications. As previously reported by 8btc, the internet conglomerate Alibaba has taken the world’s lead in terms of the number of blockchain patent filings for two consecutive years. The country’s central bank PBoC is also in the top list of blockchain patent holders.

As China’s blockchain innovations are expanding overseas, for example, Alipay empowers global first blockchain remittance to the Philippines and later Pakistan, overseas blockchain firms are also looking to China for opportunities. Chris Church, chief business development officer for New York-based firm Digital Asset in the U.S., reportedly noted the importance of doing business in and near China, saying the firm is working with the Hong Kong Exchanges and Clearing (HKEX) on a blockchain-powered program. “One of the reasons that HKEX is so important to us is because it is a gateway to the mainland’s stock market.”

The industry is still in a blossoming phase with more and more firms coming up with various blockchains, although its potential is great, global regulations, user acceptance and conflicts with other sectors are issues the blockchain industry has to face.

Of late, China has included the first batch of 197 blockchain projects under registration and regulation, a step forward to an orderly and healthy environment for the blockchain industry within the territory.