NEW YORK, July 23, 2018 /PRNewswire/ -- Seven Stars Cloud Group, Inc. (NASDAQ: SSC) ("SSC" or the "Company"), a leading global fintech firm focusing on digital asset production and distribution, today announced that the Company has successfully entered into an exclusive agreement with the China Venture Capital Research Institute ("CVCRI") and its subsidiaries.

Seven Stars Cloud (PRNewsfoto/Seven Stars Cloud Group, Inc.)

As a result, of this strong partnership, SSC will be able to provide the following asset classes and fintech services to financial markets:

  • Fractionalization and securitization in China, to create new fixed income classes that can be traded on government designated exchanges within China. These asset classes are exclusive to SSC.
  • Regulated products and assets, created globally, and traded on regulated exchanges outside of China - such as DBOT (Delaware Board of Trade) with whom SSC already has a strong relationship with, amongst others.
  • Tokenization of these asset classes, including already issued Real Estate Investment Trusts (REITs) and Asset-backed Securities (ABS) will be tokenized and traded on regulated digital asset exchanges, outside of China.

CVCRI is uniquely supported by Chinese regulators and authorities, in order to innovate and pioneer next-generation efforts across the above asset classes.  As such, they have decided to work on an exclusive basis with SSC, given SSC's unique and proprietary technology platforms, fintech ecosystem, and vast global reach.

As a result of the strong partnership, SSC will become the sole provider of fintech services for these assets, including but not limited to large-scale commercial real estate and properties held by leading insurance companies, large investment funds, and other fixed income suitable products. SSC will work with CVCRI to develop products for the fixed income asset class and facilitate their sales and trading process on government designated exchanges within China.  This exclusivity allows SSC to create significant competitive advantages and barriers to entry, as SSC is the only company in the world that has access to this class of fixed income assets.

The underlying technology that SSC will use for these assets is part of the SSC fintech ecosystem, which includes but is not limited to, Velocity Ledger ("VL"), a leading blockchain-enabled security token Issuance and secondary trading technology platform, and Plutos, BBD (Big Business Data)'s dynamic ontology-based AI engine. Plutos serves as a super intelligence system that collects mass data and carries out data processing to produce high value indexes and product pricing information.

The partnership will provide a full value chain of fintech and asset digitization services. These services will include AI-enhanced rating and risk management services, blockchain-enabled fractionalization, securitization and tokenization, and distribution and trading services through banks and security broker dealer networks in China, with the ability to extend the sales and trading globally.

As the partnership continues to develop, SSC's fintech ecosystem will also be capable of digitizing and tokenizing existing ABS and REIT products on a global basis. While the Chinese market has an abundance of quality illiquid assets such as large-scale commercial real estate and properties held by leading insurance companies, large investment funds, and other fixed income suitable products, it lacks the infrastructure to support a liquid fixed income market that is accessible to retail and institutional investors.

The AI and blockchain-powered services provided by SSC further enables the current global digital asset revolution, as various industry verticals and financial markets enter into an era of "smart" and decentralized asset products.  SSC is well-positioned to capitalize on this opportunity by developing these markets and unlocking tremendous value. In effect, SSC is creating a new digital asset ecosystem and the supporting market across these asset classes, thereby "unlocking" their liquidity premium.  Furthermore, SSC and CVCRI will undertake their activities in full compliance with regulators. 

China Venture Capital Research Institute (CVCRI) was founded in July 2003 with its headquarters in Guangzhou and operating center in Shenzhen. With a status of a National Think Tank in China, it has undertaken research topics and market experiments commissioned by various national and local government agencies. CVCRI is also the publisher of the National Venture Investment and Entrepreneurship Year Book and the organizer of annual conferences. CVCRI provides advisory services to the financial industry and is the most recognizable brand of Chinese financial service market.

Madam Ding Jihong, President of CVCRI, stated that the establishment of this partnership with SSC is a meaningful step towards fintech innovation in China. The relationship will create the liquidity for large financial institutions and asset owners through both the creation of fixed income products and sales and trading through government designated and approved channels and platforms. All the activities under this relationship will be carried out and executed under close guidance from regulators. This exclusive partnership could unlock great value for current illiquid portions of investment funds in China, which reached by end of June a total 73,854 funds with total Assets Under Management (AUM) of $1.88 trillion USD. For large insurance companies holding commercial real estate, the untapped fixed income market value grows much larger.

Dr. Bruno Wu, Chairman and CEO of SSC, commented "SSC is bringing together the world's best underlying technologies that enable leading fintech and asset digitization services. We have also been able to bring aboard an amazingly talented team, representative of top talent in New York, London, and other locations globally to execute our strategy. We are thrilled to execute on this opportunity with CVCRI to deliver next generation fixed income product creation and distribution, utilizing next-generation fintech and AI technologies. SSC is committed to leveraging its newly acquired Global Headquarters for Technology and Innovation in West Hartford, Connecticut to build out similar fintech service centers across the world."

About Seven Stars Cloud Group, Inc. (http://www.sevenstarscloud.com/)
SSC is aiming to become a next generation Artificial-Intelligence (AI) & blockchain-powered, fintech service company, focusing on digital asset production and distribution. The Company facilitates and enables the transformation from traditional financial markets into the asset digitization era.  SSC acts as the manager and service provider of an ecosystem for securitization and digital currency tokenization as well as trading system integration.

Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Media Contacts
Seven Stars Cloud
Eric Soderberg, Forefront Communications
Phone: 914-414-2884
Email: eric@forefrontcomms.com

IR Contacts
Federico Tovar, CFO Seven Stars Cloud
Chad Arroyo, CMO Seven Stars Cloud
SOURCE Seven Stars Cloud Group, Inc.
Email: ir@sevenstarscloud.com

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SOURCE Seven Stars Cloud Group, Inc.

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