Hong Kong-based digital asset financial services firm HashKey Group is planning to raise funds at a valuation of over $1 billion. Sources familiar with the matter have revealed that the crypto leader is in the process of raising $100 to $200 million. As one of the two licensed digital asset exchanges in Hong Kong, HashKey is making several strategic moves to maintain its dominance while the city’s crypto hub initiative attracts global exchanges and firms.
In this bid to expand its operations, HashKey is in early-stage talks to raise funding and entice potential investors. However, as the deal progresses, the funding size and valuation may change, and it is important to note that the numbers have not been finalized yet.
The company presently operates a range of services, including HashKey Capital, HashKey Custody, brokerage HashKey XPert, HashKey Pro exchange, and Web3 infrastructure HashQuark. Moreover, HashKey recently co-hosted Hong Kong’s debut Web3 Festival and is launching wealth management, an OTC desk, and exchange services in the city. Currently, HashKey and BC Technology Group Co.’s OSL are the only two licensed bourses. Stakeholders expect HashKey’s exchange to open in the second quarter of 2023, with ZA Bank and Bank of Communications serving as settlement banks.
The plans for other major crypto exchanges such as OKX, Bitget, and Huobi to obtain licenses under Hong Kong’s new regulatory regime further highlight the support for the city’s digital asset push. Hong Kong is taking a more progressive approach, introducing crypto regulations and licenses for the industry, supported by the Hong Kong Securities and Futures Commission (SFC), which is ensuring the smooth transition to becoming a crypto hub.
In addition to welcoming crypto businesses, Hong Kong is also part of the digital asset revolution through its central bank digital currency (CBDC) initiative. Recently, Ripple joined the Hong Kong Monetary Authority’s (HKMA) e-HKD Pilot Programme. This program will explore various use cases involving the settlement of Web3 transactions, tokenized assets, and tokenized deposits.
In conclusion, as Hong Kong strives for a more prominent position in the global digital asset landscape, HashKey Group’s fundraising efforts may fuel further growth for the company and solidify its place as one of the leading digital asset exchanges in the region. On the flip side, the increased competition and the evolving regulatory landscape might pose challenges for the company in the coming years.
Source: Coingape
