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The digital asset will be fully backed by reserve assets held in regulated and authorized institutions within Hong Kong.
Asia-based cryptocurrency company IDA has successfully completed a $6 million seed funding round to support the development and launch of its first stablecoin HKDA in Hong Kong.
According to a press release published on Monday, September 2, the funding round was led by two prominent investors: CMCC Global, which contributed an undisclosed amount through its Titan Fund, and Hashed, a venture fund known for backing early-stage blockchain projects. The round also saw participation from Hack VC, Anagram, GSR, Protagonist, and angel investors, including Raj Gokal, Co-founder of Solana.
🌟 Big milestone to #IDA!
We’ve secured USD 6 million in seed funding to bring our fiat-referenced stablecoin, #HKDA, to life soon! Thank you all our investors and strategic blockchain partners!
Let’s unleash the power of stablecoins! 🚀
Full release: https://t.co/EarK9hyUr1 pic.twitter.com/7Yx84HLiq7
— IDA (@IDAfi24) September 2, 2024
IDA Partners with Leading Blockchain Networks
With this investment, IDA will develop HKDA, its first-ever stablecoin, which will be pegged 1:1 to the value of the Hong Kong Dollar (HKD). The digital asset will be fully backed by reserve assets held in regulated and authorized institutions within Hong Kong.
The company announced that HKDA will be built on public blockchains to facilitate cross-border payments and help businesses transition smoothly between traditional finance and the decentralized Web3 economy.
To ensure HKDA’s interoperability, accessibility, and liquidity, IDA has partnered with several blockchain foundations, including Solana (SOL), Polygon (MATIC), Aptos (APT), and Mantra (OM). These blockchains will support the minting, redemption, and widespread adoption of HKDA.
With these networks supporting the stablecoin, crypto traders in Hong Kong will have the flexibility to access HKDA on the blockchain of their choice, allowing them to buy, trade, and exchange the digital asset for other cryptocurrencies.
HKDA to Go Live This Year
In addition to these partnerships, IDA is working closely with the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) to ensure the stablecoin complies with local regulations.
Currently, HKDA is in its early stages of development and is expected to be tested on testnets soon, though the exact timeline has not been disclosed. Once the beta phase is completed, the stablecoin is scheduled to go live later this year.
“We plan to launch our mainnet before the end of this year and achieve regulatory clarity in early 2025,” said Sean Lee, Co-founder and Chief Strategy Officer of IDA.
IDA to Expand Outside Hong Kong
With the Hong Kong government actively working on regulations to support the use of stablecoins in the country, Ryan Kim, founding partner at Hashed anticipates IDA to spearhead the coming changes. He believes the company has the expertise to “perfectly bridge conventional and digital financial systems, potentially reshaping finance across Asia and beyond.”
Following the launch of HKDA in Hong Kong, IDA plans to introduce another stablecoin backed by the US dollar to expand to other countries outside the Hong Kong market.
The firm also intends to form additional partnerships with industry players to further enhance its presence and broaden its reach across the crypto space.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
