According to Bloomberg, HashKey Group secured a $30 million investment from Gaorong Ventures of China. The publication cited people familiar with the matter in a report on Friday, disclosing how Hashkey intends to utilize the funds.
As reported, the Hong Kong-based company will leverage the funds to advance its blockchain offerings. More so, the investment has further raised the exchange’s valuation to a massive $1.5 billion valuation.
This significant investment will help place HashKey at the forefront of the fast-growing digital assets hub in Hong Kong. Meanwhile, the investment is Gaorong’s first foray into the cryptocurrency landscape.
Before now, the Beijing-based venture capital firm has never invested in a cryptocurrency company. This is quite surprising considering how Gaorong committed heavily to various innovative projects in the past including Opay, Meituan, and PDD holdings.
However, the lack of interest in crypto companies by Gaorong is due to the hostility of China towards crypto in recent times. The legal standing of crypto in China is unclear as the Asian country views cryptocurrencies as a threat to financial stability.
Therefore, business or transactional activities relating to crypto are illegal in the country. This massive roadblock has tampered with the growth of the cryptocurrency sector in China, forcing major institutional investors including Gaorong.
Side Note on HashKey
HashKey is a regulated virtual asset service provider that provides crypto trading, asset management, and custody services. The exchange has intensified its expansion efforts lately with the aim of becoming a major market player.
The investment from Gaorong surfaced just a few days after HashKey received regulatory approval from the Hong Kong Securities and Futures Commission (SFC). According to a Binbits report, the approval permitted the crypto exchange to offer some curated digital assets.
Similarly, within the last month, HashKey landed two major regulatory licenses in Dubai and Ireland. The development further strengthened indications that the exchange is firing on all cylinders to evolve into a force to reckon with.
It is worth mentioning that the expansion effort will further solidify the massive growth HashKey recorded in recent times. Recently, the firm attained a unicorn status after raising $100 million in a Series A funding round at a pre-money valuation of more than $1.2 billion.
Thanks to the latest funding from Gaorong, HashKey now has the confirmed status of a $1.5 billion company. HashKey in 2024 made history as one of the companies that introduced Hong Kong-based Bitcoin and Ethereum Exchange-traded funds.
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