HashKey Capital plans a $1 billion-plus valuation in new funding round

The Hong Kong-based HashKey Group plans to raise between $100 million and $200 million in a new funding round at a valuation above $1 billion, according to people familiar with the matter, as reported by Bloomberg.

Negotiations are at an early stage, and terms of the potential deal could change.

The company intends to leverage the authorities of the Chinese special administrative region to turn Hong Kong into a crypto hub.

HashKey Group — the subsidiary of Chinese conglomerate Wanxiang Group — was one of the first investors in Ethereum in 2014. The firm operates in areas from venture financing to asset management and trading.

HashKey is the operator of one of two licensed cryptocurrency exchanges in Hong Kong. The platform will be launched by the end of the second quarter.

According to the rules proposed in February, from 1 June 2023 all centralised platforms doing business in the jurisdiction or dealing with local investors must obtain a licence from the Securities and Futures Commission.

In January 2023 HashKey Capital closed its third fund at $500 million. The vehicle is aimed at investments in crypto assets and focuses on infrastructure solutions and decentralised applications.