Hong Kong-based agency IDA has secured $6 million in seed funding to speed up the launch of its first fiat-referenced stablecoin.
IDA, a Hong Kong-based digital asset firm, has raised $6 million in seed funding led by CMCC International’s Titan Fund and Hashed to develop its first fiat-referenced and controlled stablecoin HKDA.
In a press launch on Sept. 2, the stablecoin issuer introduced that the funding spherical additionally noticed participation from a number of different buyers, together with Hack VC, Anagram, GSR, and Protagonist, along with angel buyers, akin to Solana co-founder Raj Gokal. Moreover, IDA has partnered with blockchain foundations like Solana, Polygon, and Aptos in a bid to “foster HKDA’s interoperability, accessibility, resilience, and liquidity.”
The funds will help IDA’s efforts to have interaction with native regulatory our bodies such because the Hong Kong Financial Authority, because the agency anticipates important development within the stablecoin market, which it expects to increase to “over $3 trillion within the subsequent 5 years.”
Sean Lee, co-founder and CSO of IDA, says HKDA is constructed on public blockchains and is anticipated to launch on testnet quickly, with a mainnet launch deliberate by year-end and regulatory approval focused for early 2025. Ultimately, IDA goals to increase its choices past Hong Kong, concentrating on different U.S. dollar-pegged economies and different nations alongside the Belt and Highway and International South initiatives, the press launch reads.
The funding spherical comes because the HKMA introduced its stablecoin sandbox members, who will start testing digital currencies backed by fiat. The HKMA clarified that members won’t deal with public funds or solicit investments in the course of the preliminary sandbox section.
