Gaorong Ventures Makes Rare Crypto Investment in HashKey

Gaorong Ventures has invested $30 million in HashKey Group, Hong Kong’s largest licensed crypto exchange operator. The deal, made at a pre-money valuation exceeding $1 billion, highlights growing Chinese VC interest in digital assets despite Beijing’s 2021 ban on cryptocurrencies.

HashKey’s Valuation Remains Strong Amid Crypto Market Growth

The $1.5 billion post-money valuation remains largely unchanged from a year ago, when HashKey raised $100 million and achieved unicorn status. The investment underscores crypto’s resilience, as Bitcoin’s price doubled in 2024 while crypto’s startups raised $10 billion in funding.

Chinese VC Firms Expand into Digital Assets

While Chinese investors have largely avoided direct crypto’s investments, some major firms have entered the space. Tencent recently backed Wintermute Trading, while Hongshan (formerly Sequoia China) has invested in web3 firms like Animoca Brands.

HashKey’s Global Crypto Operations and Expansion

Founded in 2018, HashKey Group operates one of Hong Kong’s first two licensed crypto’s exchanges. The firm offers crypto’s trading, venture funding, and asset management, with operations in Singapore, Japan, and Bermuda.

Blockchain Veteran Xiao Feng Leads HashKey’s Vision

HashKey’s Chairman Xiao Feng transitioned to blockchain investments after his tenure at Wanxiang Group, a major backer of HashKey. His leadership has positioned HashKey as a key player in Hong Kong’s emerging regulated crypto’s ecosystem.

Crypto Investment Trends and Future Outlook

Despite regulatory uncertainty, crypto’s venture funding remains strong, with Gaorong’s latest move signaling institutional confidence in digital assets. As Chinese VCs cautiously explore crypto‘s, HashKey’s success could encourage further mainstream adoption.