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China-based venture capital firm Gaorong Ventures has invested $30 million in Hong Kong’s Hashkey Group, a licensed digital asset exchange, at a post-money valuation close to $1.5 billion, according to a Bloomberg report.
Gaorong, known for its early investments in Chinese tech firms such as Meituan and PDD Holdings Inc., has now entered the digital asset space. The investment underscores a rare but significant move by a Chinese VC firm into a market characterized by high volatility and evolving regulations.
Hashkey Group, established in 2018, is one of Hong Kong’s first licensed crypto exchanges. Beyond trading, the company also provides venture funding and asset management services across multiple jurisdictions, including Singapore, Japan, and Bermuda. With this fresh capital, Hashkey is expected to continue expanding its regional operations, according to a company spokesperson.
The funding comes amid a broader recovery in crypto venture investment following a decline in prior years. Bloomberg noted that while China maintains a ban on crypto trading and mining, some Chinese investors are cautiously re-engaging with the sector through regulated offshore entities like Hashkey.
The investment in Hashkey aligns with Hong Kong’s push to establish itself as a global digital asset hub with robust regulatory frameworks.
According to data from PitchBook, venture capital funding in the crypto sector saw a slight increase in Q4 2024 compared to the previous quarter. However, the total $10 billion raised in the last quarter of 2024 was $300 million lower than the previous year, despite the backdrop of a crypto market resurgence.
Hashkey’s Regulatory Standing and Expansion
Hashkey’s licensing in Hong Kong positions it among the few regulated crypto exchanges in the region. Since November 2022, the firm has been licensed under the Hong Kong Securities and Futures Commission (SFC) to deal in securities and provide automated trading services. The company received its virtual asset trading platform license on May 30, 2024, solidifying its compliance credentials.
As part of Hong Kong’s ongoing crypto licensing efforts, the SFC recently granted additional licenses on January 27, 2025, to PantherTrade and YAX. The regulator has conducted on-site inspections of license applicants, with a focus on ensuring asset security, KYC compliance, and cybersecurity measures.
Hashkey previously achieved unicorn status on January 16, 2024, following a $100 million Series A funding round at a pre-money valuation of over $1.2 billion. The latest investment from Gaorong indicates continued confidence in Hashkey’s business model and regulatory approach.
While a Gaorong spokesperson declined to comment on the investment, a Hashkey representative confirmed the deal and valuation details to Bloomberg. As regulatory frameworks continue to evolve in Hong Kong, Hashkey’s latest capital injection may pave the way for further institutional engagement in the digital asset sector.
Earlier this month, HashKey was granted approval to offer discretionary account management services for virtual assets (VA) to professional investors in Hong Kong, building on its Virtual Asset Service Provider (VASP) in-principle approval from Dubai’s Virtual Assets Regulatory Authority (VARA), which it secured last month.
