ZA Group led a Series A2 funding round worth 40 million USD into RD Technologies – one of three companies participating in Hong Kong's stablecoin sandbox.
ZA Group has just announced leading a Series A2 funding round worth 40 million USD into RD Technologies, one of the three rare businesses participating in Hong Kong's stablecoin sandbox. The event takes place against the backdrop of the official stablecoin regulatory framework coming into effect this week, generating great expectations in the digital asset market in this administrative region.
ZA Group is the parent company of ZA Bank – the first and largest digital bank in Hong Kong, controlled by ZhongAn Insurance Group of China. This organization was founded by three chairpersons from Alibaba, Tencent, and Ping An Insurance, bringing prestige and strong financial resources to RD Technologies' HKDR stablecoin project.
With strict compliance requirements in Hong Kong, including the obligation to verify the identity of all stablecoin holders, expectations for significant growth in volume during the initial phase are low. The Hong Kong Monetary Authority (HKMA) has warned that very few stablecoin issuers will pass the first round of review, making companies in the sandbox like RD with the HKDR stablecoin more likely to be granted licenses.
Strategic and competitive partners in the sandbox
Along with the investment, ZA Bank also signed a memorandum of understanding with RD Technologies, including providing custodial services for the stablecoin-backed fund and becoming the distributor of HKDR stablecoin in the market. Notably, ZA Bank is the first bank in Asia to offer crypto services to retail customers, creating a significant competitive advantage.
Besides RD Technologies, the other two entities in Hong Kong's stablecoin sandbox include a joint venture between Standard Chartered, HK Telecom, and Animoca Brands, along with JD Coinlink – a subsidiary of JD.com, a major e-commerce group in China. Yesterday, social media spread information about a trademark application related to JD, however, due to the lack of an official announcement and the trademark name not matching expectations, it is likely that this is a ploy by impersonators.
The Series A2 funding round of RD Technologies also saw participation from several other investors including China Harbour, Bright Venture, Hivemind, HSG, Eternal Digital, CMSC Partners, and Guotai Junan International Private Equity Fund. The first stablecoin license in Hong Kong is expected to be granted early next year, marking an important milestone for the development of the digital asset market in this region.