China’s Gaorong Ventures Invests $30 Million in Hong Kong Crypto Unicorn HashKey Group

Gaorong Ventures, a prominent Chinese venture capital firm, has invested $30 million into HashKey Group, the operator of Hong Kong’s largest licensed crypto exchange. The deal values HashKey at a post-money valuation of approximately $1.5 billion, signaling growing institutional interest in the crypto sector despite regulatory hurdles in China.

A Rare Move in a Restricted Market

Gaorong Ventures, known for its early backing of Chinese internet giants like Meituan and PDD Holdings Inc., has taken a notable step into the volatile crypto market. This investment is significant, considering China’s 2021 ban on cryptocurrency activities.

The deal was completed at a pre-money valuation exceeding $1 billion, similar to HashKey’s valuation from last year, when it raised $100 million and achieved unicorn status.

Expanding Interest from Chinese Investors

Despite official restrictions, Chinese investors continue to show cautious optimism toward crypto ventures. Other notable players include:

• Tencent Holdings Ltd., which recently invested in Wintermute Trading Ltd.
• Hongshan (formerly Sequoia China), which backs web3 pioneers like Animoca Brands.

Crypto startups collectively raised $10 billion in 2024, a slight decline from the $10.3 billion raised in 2023, according to Pitchbook data.

HashKey’s Growing Footprint in the Crypto Landscape

Founded in 2018, HashKey Group operates one of Hong Kong’s two licensed crypto exchanges. The firm offers crypto trading services, venture funding, and asset management. Its geographic footprint extends to:

• Hong Kong (headquarters)
• Singapore
• Japan
• Bermuda

HashKey Chairman Xiao Feng, formerly of Wanxiang Group, shifted the conglomerate’s investment focus toward blockchain technology, making HashKey a key player in Asia’s crypto space.