RD Technologies Raises $40M Ahead of Hong Kong Stablecoin Regulations

Hong Kong-based fintech firm RD Technologies has secured $40 million in Series A2 funding, just one day before Hong Kong’s stablecoin licensing regulations are set to take effect on August 1. The funding round was led by H. Capital and included participation from ZA Global, China H., B. Venture, and Guotai Junan International Private Equity Fund, among others. This follows a $7.8 million Series A1 round raised in 2023 [1]. The new capital will be used to strengthen digital currency infrastructure and expand asset tokenization efforts, with a particular focus on stablecoins [1].

In a strategic move, RD Technologies has also partnered with ZA Bank, a subsidiary of ZA Global, to develop compliant stablecoin solutions. The two companies have signed a memorandum of understanding to collaborate on use cases such as reserve asset custody and distribution. A company spokesperson emphasized that the partnership aligns with their shared vision of delivering rapid, secure, and regulated digital financial services [1]. Rita Liu, CEO of RD Technologies, stated that the partnership reflects the company’s confidence in supporting the next generation of digital currency transactions [1].

The timing of the funding and partnership comes ahead of a major regulatory shift in Hong Kong. The city’s stablecoin licensing framework is set to launch on August 1, with approximately 50 companies, including Ant International and JD.com, expressing interest in compliance. All stablecoin issuers will need to be certified by the Hong Kong Monetary Authority (HKMA) [1]. RD Technologies was founded in 2020 by former HKMA chief Norman Chan and is led by CEO Rita Liu, who aims to bridge the gap between traditional and digital finance [1].

The company is set to leverage the new funding to develop a mobile wallet product targeting businesses that handle cross-border and multi-currency transactions. The stablecoin HKDR will be pegged to the Hong Kong dollar, offering institutional and retail users a secure and stable medium for digital transactions [1]. The investment also highlights growing momentum in the digital asset space, with Guotai Junan International’s shares surging 400% following the approval of its crypto services [1]. ZA Global has also seen strong returns, attributed in part to its involvement in the evolving digital currency ecosystem.

The firm’s strategy aligns with Hong Kong’s broader policy direction as one of Asia’s major financial centers. With rapid development and strategic partnerships, RD Technologies is positioning itself at the forefront of the regulated digital currency landscape in the region [1].

Source: [1] Hong Kong Fintech RD Technologies Nabs $40M as Stablecoin Deadline Looms (https://www.livebitcoinnews.com/hong-kong-fintech-rd-technologies-nabs-40m-as-stablecoin-deadline-looms/)