Pioneering Hong Kong digital asset developer IDA raised USD6 million in seed funding from blockchain investors CMCC Global, under its Titan Fund, and Hashed. This cash injection will help IDA develop and deploy its first fiat-referenced stablecoin, HKDA, for Hong Kong regulation.
Along with prominent angel investors like Solana co-founder Raj Gokal, other participants in this round include Hack VC, Anagram, GSR, Protagonist, Brinc, Chorus One, Kenetic, SNZ, and Yolo Investments.
Leading blockchain foundations Solana, Polygon, Aptos, and Mantra are IDA’s strategic blockchain partners in addition to being funding providers, helping to promote the interoperability, accessibility, robustness, and liquidity of HKDA.
It will take advantage of the latest developments in Web3 and fintech, beginning in Hong Kong, to expand to other nations whose currencies are likewise fixed to the US dollar.
With time, IDA hopes to expand its business and share its technologies with other countries along the Global South and Belt & Road initiatives. There will be more intriguing collaborations revealed to open up a more diverse and interconnected global market.
Read also- Malaysia-Based Malaysia’s Independent Investment Bank Acquired 8 Percent Stake in Helicap Pte Ltd
IDA’s initial product will be HKDA, a stablecoin based on public blockchain protocols and pegged to fiat currency. The goal of HKDA is to promote improved digital connectivity so that payments and trade between Hong Kong and international markets may occur seamlessly around-the-clock.
“With the current total stablecoins market cap around USD170 billion, we expect stablecoins to grow over USD3 trillion in the next 5 years. This exponential growth will underscore the increasing significance of stablecoins in the broader digital currency landscapes. Thus, IDA’s mission is to facilitate more effective and efficient cross-border trades through the blockchain for everyone,” said Lawrence Chu, Co-founder and CEO of IDA.
Every HKDA in circulation shall always be fully backed by at least 100% reserve assets in regulated, authorized institutions with headquarters in Hong Kong in order to ensure the highest level of security and stability.
Sean Lee Co-founder and CSO of IDA added, “the first goal of IDA is to enable mass adoption and empower businesses to seamlessly integrate between Web2 and Web3. To achieve this, IDA has begun active engagements with the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB), as well as domestic partners in the ecosystem, to issue regulated stablecoins in Hong Kong. HKDA, our first fiat-referenced stablecoin built on public blockchains, will shortly be heading onto testnet. We intend for our mainnet launch before the end of this year and achieve regulatory clarity in early 2025.”
In order to optimize the network effect of HKDA for both domestic and international use, It is collaborating with major industry participants to enable the digital currency’s minting, redemption, and general acceptance as a means of payment and settlement.
Read also- Saudi Arabia-Based Syarah Secures $60 Million in Series C Round Funding
Along with ecosystem partners from regulated financial institutions and Web3 platforms, IDA will introduce crucial goods in later phases that are pegged to different US dollar (USD) values.
About IDA
IDA is the leading digital asset technology business promoting blockchain finance. They help organizations merge Web2 and Web3 seamlessly.
