According to Bloomberg, the company is in early-stage talks to secure $100 million to $200 million from potential investors. However, the exact size of the deal and valuation are subject to change as they are not yet finalized.
HashKey Group operates in various financial sectors, including HashKey Capital, HashKey Custody, brokerage HashKey XPert, HashKey Pro exchange, and Web3 infrastructure HashQuark. The company is part of a growing number of digital asset firms in Hong Kong seeking to expand their customer base in a progressively liberalizing environment.
In the past year, HashKey obtained a "Type 9 asset management license" from Hong Kong's Securities and Futures Commission, enabling it to manage portfolios consisting solely of virtual assets. This license likely paved the way for the company's latest fundraising initiative.
Earlier this year, HashKey closed a $500 million investment round for a fund dedicated to infrastructure, tools, and applications that promote the widespread adoption of blockchain and crypto technologies.
Currently, HashKey and BC Technology Group's OSL bourse are the only entities permitted to operate crypto exchanges in Hong Kong. However, leaders from other exchanges such as OKX and Bitget have expressed their intention to apply for licenses under Hong Kong's new regulatory framework.
Hong Kong has been actively positioning itself as a digital innovation hub in Asia and attracting crypto firms. The city recently implemented a new regulatory regime allowing retail investors to trade specific "large-cap tokens" on licensed exchanges, with the framework scheduled to take effect next month.
The city's efforts to attract crypto companies have yielded positive results. Hong Kong's Secretary for Financial Services and the Treasury, Christian Hui, stated that over 80 digital asset companies have shown interest in establishing a presence in the city since October 2022.
The favorable regulatory environment in Hong Kong has also fueled growing investor interest in digital assets. In March, Hong Kong investors launched the ProDigital Future fund, a $100 million initiative aimed at supporting early-stage crypto and Web3 companies.
Despite China's ban on most forms of crypto activity on the mainland, the Chinese government has supported Hong Kong's vision. State-owned banks in Hong Kong, including the Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, have started providing services to crypto businesses.
These developments highlight Hong Kong's commitment to becoming a leading center for digital innovation and attracting crypto-related ventures, despite regulatory challenges and the broader geopolitical landscape.
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