IDA Secures $6 Million to Launch Regulated Stablecoin HKD
IDA, a Hong Kong-based digital asset firm, has successfully raised $6 million in seed funding to support the development of its first fiat-backed and regulated stablecoin, named HKD. This funding round was spearheaded by CMCC Global’s Titan Fund and Hashed, showcasing a significant level of confidence in IDA’s mission and future prospects.
Key Investors and Strategic Partnerships
In a press release dated September 2, IDA announced that its $6 million seed funding round attracted investments from several notable entities, including:
- Hack VC
- Anagram
- GSR
- Protagonist
Additionally, angel investors such as Raj Gokal, co-founder of Solana, participated in the funding round. The company also revealed strategic partnerships with major blockchain foundations like Solana, Polygon, and Aptos. These collaborations aim to enhance the interoperability, accessibility, resilience, and liquidity of its new stablecoin, HKD.
Engagement with Regulatory Bodies
The newly acquired funds will enable IDA to engage closely with local regulatory bodies, including the Hong Kong Monetary Authority (HKMA). The company is positioning itself to capitalize on the anticipated growth in the stablecoin market, which it projects will exceed $3 trillion within the next five years.
Lawrence Chu, co-founder and CEO of IDA, emphasized the growing importance of stablecoins in the digital currency landscape. He stated that the stablecoin market cap is expected to “surpass USD 3 trillion within the next five years.” Chu added that IDA’s mission is to “enhance cross-border trading efficiency through blockchain technology for everyone.”
Planned Stablecoin Launch
Sean Lee, Co-founder and Chief Strategy Officer (CSO) of IDA, disclosed that the company’s first fiat-referenced stablecoin, HKDA, is scheduled to enter the testnet phase soon. A mainnet launch is planned before the end of the year, reflecting the company’s swift progress in the stablecoin sector.
Lee also highlighted the company’s proactive engagement with the Hong Kong Monetary Authority (HKMA), the Financial Services and the Treasury Bureau (FSTB), and other local entities to develop a clear regulatory framework for stablecoins. Regulatory clarity is expected by early 2025, which would pave the way for smoother operations and increased adoption of stablecoins in the region.
Alignment with Project Ensemble Sandbox
The funding round coincides with the HKMA’s recent launch of “Project Ensemble Sandbox,” an initiative aimed at advancing the tokenization of real-world assets (RWA). Announced on August 28, the project will test and optimize tokenized money for interbank settlements and transactions involving tokenized assets. The sandbox will focus on key areas, including:
- Fixed-income and investment funds
- Liquidity management
- Green and sustainable finance
- Trade and supply chain finance
This initiative represents a critical step in the digital transformation of the financial sector, and IDA’s involvement highlights its commitment to innovation and leadership in the stablecoin space.
Future Outlook
IDA’s strategic moves—raising significant capital, forming partnerships with leading blockchain foundations, and actively engaging with regulatory bodies—position the company to play a pivotal role in the evolving digital asset ecosystem. With its HKD stablecoin slated for launch and regulatory clarity anticipated by early 2025, IDA is poised to make a substantial impact in the burgeoning stablecoin market.
As the company continues to innovate and expand, it is well-positioned to drive the adoption of stablecoins, facilitating more efficient cross-border trading and contributing to the global digital economy’s growth.
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