Asian digital asset firm HashKey Group is reportedly holding talks with investors to raise $100 million to $200 million in funding as the company looks to take advantage of Hong Kong’s push to be a crypto hub. Even though specific terms of the deal are not certain yet, the new funding could bring HashKey’s valuation to more than $1 billion.

HashKey Group Likely to Raise $100M-$200M in Funding

Digital asset service provider Haskhey Group is in talks to raise $100 million to $200 million in funding to capitalize on ongoing Hong Kong’s push to restore its financial hub status and attract investors. According to Bloomberg, the fundraising could value Hashkey at more than $1 billion, citing people familiar with the matter.

Still, even though the talks are in progress, specific terms, including size and valuation, are subject to change as the deal is not finalized yet.

Founded in 2018, HashKey is an Asia-based Web3 firm operating in venture funding, digital asset trading, and asset management. The company develops an ecosystem of products and services, including a regulated digital asset exchange, custody solutions, and brokerage services, among other things.

Hong Kong Doubling Down on Crypto and Web3 Ambitions

Currently, Hashkey and BC Technology Group’s crypto and blockchain platforms are the only companies that obtained an operating license in Hong Kong under its new regulatory regime. Other players planning to get a permit in the city include crypto exchanges OKX and Bitget, as well as Singapore-based banking giant DBS.

Last year, Hong Kong said it was working on a new licensing framework for digital asset service providers as part of its broader plan to become a regional crypto and fintech hub. The new regime is set to come into force on June 1, with Hong Kong authorities also planning to allow retail investors to trade major cryptocurrencies, including Bitcoin and Ether.

Several weeks ago, Hong Kong’s finance chief Paul Chan also said that now is the “right time” for the city to double down on its Web3 goals, despite recent volatility in the crypto market. His statement came just months after Hong Kong allocated $6.4 million to accelerate the development of the Web3 ecosystem in the city.

Chinese state-backed banks have courted crypto firms this year, suggesting that Bejing is backing Hong Kong’s financial plans. This is partly because the government sees Hong Kong as a testing ground for long-term policy, even though it has prohibited most crypto-related activities in mainland China.

This article originally appeared on The Tokenist

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