Tencent, Alibaba Invest $30M In Crypto Exchange HashKey

China-based Gaorong Ventures has reportedly invested $30 million in Hong Kong-registered HashKey crypto exchange, according to a Bloomberg report.

The investment, made at a pre-money valuation of nearly $1.5 billion, further strengthens HashKey’s position as a key player in Hong Kong’s regulated crypto market.

Gaorong is a private venture capital firm backed by major Chinese tech giants, including Tencent, Alibaba, and Xiaomi. HashKey achieved unicorn status back in January after raising nearly $100 million in a Series A funding round at a $1.2 billion valuation.

HashKey has been licensed in Hong Kong since 2022, allowing it to deal in securities and offer automated trading services. The exchange received its virtual asset trading license on May 30, 2024, under Hong Kong’s Anti-Money Laundering and Counter-Terrorism Financing Ordinance (AMLO).

Despite HashKey’s legitimate operations, authorities flagged over 30 scam platforms using the HashKey brand to mislead investors.

HashKey has been actively expanding its regulatory footprint, securing crypto-related licenses in Singapore, Japan, and Bermuda. In 2023, HashKey Exchange became one of the first platforms licensed under Hong Kong’s new regime to offer retail crypto trading.

The Asia-based crypto financial services firm obtained “Virtual Asset Service Provider” (VASP) registration approval from the Central Bank of Ireland. The approval allows its European unit, HashKey Europe, to provide cryptocurrency trading and custodian wallet services in the region.

Separately, HashKey DX teamed up with Ripple to lead the rollout of XRPL enterprise solutions in Japan. The partnership will also involve SBI Ripple Asia, a joint venture between SBI Holdings and Ripple, which will focus on developing supply chain finance solutions using the XRPL blockchain.

Crypto venture capital funding saw a slight rebound in Q4 2024, with $10 billion raised, though still $300 million lower than the previous year, according to PitchBook data.

Hong Kong continues expanding its regulatory framework, recently granting crypto licenses to PantherTrade and YAX in January. So far, 10 exchanges have secured licenses under AMLO since 2020, allowing them to operate legally in the region.