HashKey Group Raises $100 Million Series A Funding, Claims ‘Unicorn’ Status
In Brief
HashKey Group raised $100 million to strengthen its web3 ecosystem and business operations in Hong Kong, surpassing $1 billion in valuation.
Operator of one of the two licensed cryptocurrency exchanges in Hong Kong, HashKey Group announced it raised $100 million in a series A funding round led by a combination of existing and new investors, including institutional investors, web3 institutions and strategic partners, whose identities remain undisclosed.
According to the company, the newly raised capital will be used to strengthen its Web3 ecosystem, advance the diversification of its licensed business operations in Hong Kong, and provide support for the group’s global development initiatives.
With the new investment, the company’s current valuation has surpassed the $1 billion mark, attaining the “unicorn” status.
HashKey is engaged in various activities, encompassing a trading platform, venture funding and asset management operations in both Hong Kong and Singapore. As part of a broader trend, it is among several cryptocurrency enterprises aiming to capitalize on Hong Kong’s initiative to establish itself as a prominent digital-asset hub.
Commencing its operations in 2018, HashKey Group emerged as an early investor in Ethereum, a pivotal digital ledger in the cryptocurrency space. Chairman Xiao Feng initiated HashKey’s venture into blockchain investment during his tenure with the Chinese conglomerate Wanxiang Group, known for its diverse portfolio ranging from cars to energy-related ventures.
In August 2023, HashKey Exchange became the first licensed cryptocurrency trading exchange in Hong Kong to extend its services to retail users. This strategic move facilitated an expansion of its operational scope, transitioning from offering its services to solely professional investors to serving retail users as well.
Since initiating its trading service for retail investors, HashKey Exchange has garnered over 155,000 registered individuals.
According to data provided by CoinMarketCap, HashKey Exchange’s spot trading volume reached approximately $16 million in the 24 hours leading up to 10:10 a.m. on Tuesday in Singapore. That compares with $14 billion at Binance, the world’s biggest cryptocurrency platform.
Hong Kong Asserts Dominance in Cryptocurrency Sector
Hong Kong has emerged as a significant player in the cryptocurrency landscape, solidifying its leading position in the sector.
In June 2023, Hong Kong introduced a specialized regulatory framework for virtual assets, as part of its broader initiative to rejuvenate its standing as a leading financial center. These regulations are designed not only to attract companies but also to prioritize investor protection within the evolving landscape of virtual assets.
Within this regulatory framework, retail investors have the opportunity to engage in the trading of major tokens, including Bitcoin (BTC) and Ethereum (ETH), exclusively on licensed exchanges. Currently, HashKey Exchange and BC Technology Group’s OSL, a licensed virtual asset trading platform, are the sole platforms possessing cryptocurrency permits in Hong Kong.
Recently, the Hong Kong Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA) announced their preparedness to accept applications for virtual currency spot ETFs, incorporating them into the regulatory landscape.
The city authorities are also contemplating forthcoming guidelines regarding stablecoins—tokens designed to maintain a consistent value, with anticipation for their release in the coming months.
HashKey Group’s recent funding round marks a significant milestone for the company behind one of Hong Kong’s leading licensed cryptocurrency exchanges, highlighting its growing influence in the local and global cryptocurrency sector.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
