Chinese Venture Capital Steps Into Crypto: Hashkey Group Secures $30 Million from Pinduoduo Early Backer

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The global cryptocurrency landscape is witnessing a pivotal shift as traditional venture capital powerhouses begin to embrace blockchain innovation. At the center of this transformation stands Hashkey Group, a Hong Kong-based digital asset leader that has recently secured $30 million in funding from Gaorong Capital, a prominent Chinese venture firm famously known for being an early investor in e-commerce giant Pinduoduo (PDD Holdings).

This strategic investment underscores growing confidence in regulated crypto ecosystems—and positions Hashkey at the forefront of Asia’s evolving digital finance revolution.

A Strategic Investment with Major Implications

Hashkey Group, which operates Hong Kong’s largest licensed cryptocurrency exchange, confirmed the $30 million investment on February 17, valuing the company at nearly **$1.5 billion. This latest round follows a $100 million Series A raise in January 2024, where pre-money valuation exceeded $1.2 billion. That round included participation from OKX Ventures**, the investment arm of global exchange OKX.

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The backing by Gaorong Capital, co-founded by Forbes-listed top-tier investor Zhang Zhen, signals strong institutional trust in compliant blockchain infrastructure. As geopolitical tensions and regulatory uncertainty continue to challenge global markets, Gaorong’s move highlights a calculated bet on Hong Kong’s ambition to become a premier hub for digital assets.

Regulatory Momentum Fuels Market Growth

Hashkey’s rise aligns with Hong Kong’s aggressive push to establish itself as a regulated crypto gateway between East and West. In 2023, the city introduced a comprehensive licensing framework for retail crypto trading—making it one of the few jurisdictions in Asia to do so. Hashkey was among the first companies approved under this regime.

This progressive stance has already yielded tangible results. According to data from CoinGecko, Hashkey’s spot trading volume reached approximately $25 million early in the week following the announcement.

Moreover, Hong Kong’s Investment Promotion Agency has taken groundbreaking steps by accepting Bitcoin and Ethereum as valid forms of asset proof for its Capital Investor Entry Scheme. Clement Sui, a practicing Hong Kong accountant, revealed that an Ethereum-backed application worth HK$30 million was recently approved. This follows the city’s first successful Bitcoin-supported investment migration case in October 2024.

These developments reflect a broader trend: digital assets are no longer fringe instruments but recognized components of wealth portfolios within formal financial systems.

Leadership and Ecosystem Influence

At the helm of Hashkey is Xiao Feng, a visionary figure in China’s blockchain space. He founded the blockchain division of Wanxiang Group, one of China’s largest conglomerates, and later launched Distributed Capital, a dedicated blockchain-focused venture fund.

Distributed Capital’s portfolio includes high-impact players such as Matrixport, the crypto financial services platform backed by Chinese crypto pioneer Wu Jihan, and Circle, issuer of the USDC stablecoin.

Under Xiao Feng’s leadership, Hashkey has expanded beyond trading into venture capital, asset management, and blockchain infrastructure development, creating an integrated ecosystem that supports innovation across multiple layers of Web3.

Expanding Hong Kong’s Digital Asset Frontier

Hashkey is not alone in driving Hong Kong’s crypto evolution. In September 2024, fintech startup RD Technologies raised $7.8 million from investors including HongShan (formerly Sequoia China), led by billionaire Neil Shen. The funding will support RD Technologies’ entry into digital assets, including plans to launch a Hong Kong dollar-pegged stablecoin, backed by cash and cash equivalents.

This wave of institutional-grade projects illustrates how Hong Kong is leveraging its status as a global financial center to build a secure, transparent, and innovation-friendly crypto environment.

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Global Trends Shaping Local Opportunities

While regional momentum builds, global macro trends are also influencing market dynamics. Since Donald Trump’s re-election in November 2024, Bitcoin—the world’s largest cryptocurrency by market cap—has surged around 40%, briefly surpassing $108,000 in January 2025 amid speculation over pro-crypto policies.

Trump has advocated for the U.S. to become the “global cryptocurrency capital” and proposed establishing a strategic Bitcoin reserve, fueling bullish sentiment among institutional investors.

However, rising U.S.-China trade tensions have introduced volatility. Risk assets like Bitcoin have pulled back about 10% from their peak, reflecting investor caution amid geopolitical uncertainty.

Still, events like these reinforce the importance of regulated, jurisdictionally compliant platforms like Hashkey—where security, transparency, and regulatory alignment meet.

FAQ: Understanding Hashkey’s Role in the Crypto Ecosystem

Q: What is Hashkey Group?
A: Hashkey Group is a Hong Kong-based financial technology company operating a licensed cryptocurrency exchange. It also engages in blockchain venture investing, asset management, and infrastructure development.

Q: Why is Gaorong Capital’s investment significant?
A: Gaorong Capital is a top-tier Chinese VC firm known for early bets on major tech successes like Pinduoduo. Its investment signals strong confidence in regulated crypto ventures and Hong Kong’s digital asset ambitions.

Q: Can you use crypto for investment migration in Hong Kong?
A: Yes. The Hong Kong Investment Promotion Agency has approved applications using Bitcoin and Ethereum as proof of assets under its Capital Investor Entry Scheme.

Q: Is Hashkey available to retail investors?
A: Yes. Hashkey was among the first firms licensed under Hong Kong’s 2023 digital asset regulations to offer crypto trading services to retail customers.

Q: What other major investors support Hashkey?
A: Besides Gaorong Capital, Hashkey has received funding from OKX Ventures and raised $100 million in its Series A round in early 2024.

Q: How does Hashkey compare to other Asian crypto exchanges?
A: Unlike many regional platforms operating in regulatory gray areas, Hashkey operates under full Hong Kong regulatory oversight, giving it a competitive edge in credibility and long-term sustainability.

The Road Ahead for Institutional Crypto Adoption

As traditional finance increasingly intersects with blockchain technology, companies like Hashkey are setting new standards for compliance, security, and scalability. With strong backing from elite venture firms and alignment with forward-thinking regulation, Hashkey is well-positioned to lead Hong Kong’s charge toward becoming Asia’s premier digital asset hub.

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The fusion of experienced leadership, strategic funding, and supportive policy frameworks creates a powerful catalyst for growth—not just for one company, but for an entire financial ecosystem on the brink of transformation.

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