HashKey Group Secures $100 Million in Series A Funding, Reaches ‘Unicorn’ Status

Operates as one of the two authorized cryptocurrency exchanges in Hong Kong, HashKey Group has announced it secured $100 million in a Series A funding round, led by a mix of current and new investors, including institutional players, Web3 institutions, and strategic partners, whose identities remain confidential. 

The company indicated that the newly acquired funds will be dedicated to bolstering its Web3 ecosystem, diversifying its licensed business activities in Hong Kong, and aiding the company's international development efforts.

This latest investment propels the company's valuation past the $1 billion threshold, thereby earning it the much-coveted 'unicorn' classification.

Engaging in a variety of activities, HashKey operates a trading platform, establishes venture capital funding, and manages assets in both Hong Kong and beyond. Singapore As part of a larger trend, it stands out among several cryptocurrency companies aiming to leverage Hong Kong's initiative to position itself as a key player in the digital-asset arena.

Since it began operations in 2018, HashKey Group has been an early backer of Ethereum , a significant digital ledger in the cryptocurrency sector. Chairman Xiao Feng embarked on HashKey's blockchain investment journey during his time with the Wanxiang Group, a Chinese conglomerate with a wide-ranging portfolio that includes ventures in automotive and energy.

In August 2023, HashKey Exchange proudly became the first licensed cryptocurrency trading platform in Hong Kong to offer services to retail traders. This strategic decision broadened its operational reach, transitioning from serving only professional investors to welcoming retail users as well.

Since kicking off its trading services for retail users, HashKey Exchange has attracted over 155,000 registered accounts.

Data from CoinMarketCap reveals that HashKey Exchange's spot trading volume reached around $16 million during the 24 hours leading up to 10:10 a.m. on Tuesday in Singapore, contrasting with $14 billion at Binance , the largest cryptocurrency exchange worldwide.

Hong Kong Establishes Itself as a Leader in the Cryptocurrency Field

Hong Kong has firmly positioned itself as a vital player in the cryptocurrency scene, reinforcing its significant role within the sector.

In June 2023, Hong Kong rolled out a specialized regulatory framework concerning virtual assets as part of a broader strategy to rejuvenate its status as a preeminent financial hub. This regulatory approach aims not only to attract businesses but also to ensure investor protection in the ever-evolving landscape of virtual assets.

Under this regulatory structure, retail investors gain the ability to trade major tokens, including Bitcoin (BTC) and Ethereum (ETH), exclusively through licensed exchanges. At this moment, HashKey Exchange and BC Technology Group’s OSL, a licensed platform for virtual asset trading, stands as one of the few possessing cryptocurrency permits in Hong Kong. 

Recently, both the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have indicated their readiness to accept applications for virtual currency spot ETFs , integrating them into the regulatory framework. 

The local authorities are also considering forthcoming guidelines related to stablecoins—tokens designed to maintain a stable value, with expectations for their introduction in the upcoming months.

The recent funding round for HashKey Group marks a notable achievement for the firm behind one of Hong Kong’s leading licensed cryptocurrency exchanges, underscoring its expanding influence in both the local and global cryptocurrency markets.