IDA, a Hong Kong-based digital asset firm, has secured $6 million in seed funding to develop its inaugural fiat-backed and regulated stablecoin, HKD.
The investment round was led by CMCC Global’s Titan Fund and Hashed.
In a press release on September 2, IDA revealed that its $6 million seed funding round included investments from Hack VC, Anagram, GSR, and Protagonist, along with angel investors such as Raj Gokal, co-founder of Solana. The company also announced partnerships with blockchain foundations like Solana, Polygon, and Aptos to enhance the interoperability, accessibility, resilience, and liquidity of its new stablecoin, HKD.
The funds will enable IDA to engage with local regulatory bodies, including the Hong Kong Monetary Authority, as the company anticipates substantial growth in the stablecoin market, projecting it will surpass $3 trillion within the next five years.
Lawrence Chu, co-founder and CEO of IDA, has pointed out that stablecoins are increasingly important in the digital currency landscape. According to Chu, the current stablecoin market cap will
“surpass USD 3 trillion within the next five years.”
He noted that IDA’s mission is to “enhance cross-border trading efficiency through blockchain technology for everyone.”
As per Sean Lee, Co-founder and CSO of IDA, the company’s initial fiat-referenced stablecoin, HKDA, is set to enter the testnet phase soon. The mainnet launch is planned before the year-end.
Lee also noted that the company has been actively engaging with the Hong Kong Monetary Authority (HKMA), the Financial Services and the Treasury Bureau (FSTB), and the local ecosystem on regulatory frameworks for stablecoins. He noted regulatory clarity is anticipated in early 2025.
The funding round coincides with the Hong Kong Monetary Authority’s (HKMA) launch of “Project Ensemble Sandbox,” aimed at advancing the tokenization of real-world assets (RWA). Announced on August 28, the initiative will test and optimize tokenized money for interbank settlements and transactions involving tokenized assets. The sandbox will focus on fixed-income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.
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