Digital Asset Firm Hashkey Seeks Investment at $1B+ Valuation as Hong Kong Expands Access

  • Hashkey is currently engaged in preliminary discussions to secure a funding round of approximately $200 million.
  • Hong Kong is proudly promoting its emerging status as a prominent hub for cryptocurrencies.

Hashkey Group, a cryptocurrency investment firm, is planning to raise funds with a valuation exceeding $1 billion, capitalizing on Hong Kong’s push for digital assets to attract potential investors.

Sources familiar with the matter revealed that Hashkey is currently engaged in initial discussions to secure $100 million to $200 million in funding. However, the specific terms, such as the final amount and valuation, are subject to change as the negotiations are still ongoing. The individuals providing the information preferred to remain anonymous due to the private nature of the talks.

When approached for comment, representatives from Hashkey declined to provide any statements.

Hashkey operates in various sectors, including venture funding, asset management, and trading. It is among several locally based firms aiming to expand their customer base in an increasingly liberalized environment. The Hong Kong government is actively promoting the development of the digital asset sector as part of its broader strategy to restore the city’s status as a cutting-edge financial hub. In an effort to boost the local economy and reverse the talent drain caused by Covid-related restrictions over the years, Hong Kong plans to permit retail trading of major cryptocurrencies on licensed exchanges like Hashkey.

Presently, Hashkey and BC Technology Group Co.’s OSL exchange are the only two platforms with permits. However, other exchange leaders, such as OKX and Bitget, have expressed their intentions to apply for licenses under Hong Kong’s new regulatory framework.

The Chinese government has shown support for Hong Kong’s overall vision by attracting crypto businesses, among other actions. This is partially because Beijing considers the city as a testing ground for long-term policies, despite banning most forms of crypto activities on the mainland.

Hong Kong will implement a new licensing regime for virtual asset service providers starting June 1, and plans are in place to allow retail investors to trade major tokens like Bitcoin and Ether. This approach contrasts with the global struggle of regulators in dealing with the industry following the market crash last year and several high-profile incidents, including the bankruptcy of the FTX exchange.

Eddie Yue, the Chief Executive Officer of the Hong Kong Monetary Authority, has emphasized the city’s commitment to maintaining a stringent regulatory framework.

Founded in 2018 by Xiao Feng, who spun it off from the Chinese conglomerate Wanxiang Group, Hashkey initially operated as an early corporate investor in Ethereum. In April, the firm announced that its exchange would launch in the current quarter, with ZA Bank and Bank of Communications serving as settlement banks.


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