Asia-based Cryptocurrency Company IDA Completes $6M Seed Funding Round to Launch Hong Kong Dollar-pegged Stablecoin HKDA

The digital asset will be fully backed by reserve assets held in regulated and authorized institutions within Hong Kong.

Hong Kong-based Web3 company IDA has secured $6 million in a seed funding round to launch its first stablecoin pegged to the Hong Kong Dollar (HKD).

According to a press release on Monday, the round was led by two major investors: CMCC Global, which participated through its Titan Fund for an undisclosed amount, and Hashed, a venture fund that typically backs early-stage blockchain projects.

Other participants included Hack VC, Anagram, GSR, Protagonist, and several angel investors, among them Raj Gokal, Co-founder of Solana (SOL).

Ida Partners with Solana, Polygon, Aptos, Mantra

This investment will see IDA create HKDA, its first stablecoin pegged 1:1 to the value of the HKD. The digital asset will be fully backed by reserve assets that are held within regulated and authorized institutions in Hong Kong.

The company announced that HKDA will be built on public blockchains to facilitate cross-border payments and help businesses transition smoothly between traditional finance and the decentralized Web3 economy.

To ensure HKDA’s interoperability, accessibility, and liquidity, IDA has partnered with several blockchain foundations, including Solana, Polygon (MATIC), Aptos (APT), and Mantra (OM). These blockchains will support the minting, redemption, and widespread adoption of HKDA.

With these networks supporting the stablecoin, crypto traders in Hong Kong will have the flexibility to access HKDA on the blockchain of their choice, allowing them to buy, trade, and exchange the digital asset for other cryptocurrencies.

Hkda to Launch This Year

In addition to these partnerships, IDA is working closely with the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) to ensure the stablecoin complies with local regulations.

Currently, HKDA is in its early stages of development and is expected to be tested on testnets soon, though the exact timeline has not been disclosed. Once the beta phase is completed, the stablecoin is scheduled to go live later this year.

“We plan to launch our mainnet before the end of this year and achieve regulatory clarity in early 2025,” said Sean Lee, Co-founder and Chief Strategy Officer of IDA.

Ida to Expand Outside Hong Kong with Usd Stablecoin

As the Hong Kong government actively works on stablecoin regulations to support the use of these digital assets in the country, Ryan Kim, founding partner at Hashed, anticipates IDA to spearhead the coming changes. He believes the company has the expertise to “perfectly bridge conventional and digital financial systems, potentially reshaping finance across Asia and beyond.”

Following the launch of HKDA in Hong Kong, IDA plans to introduce another stablecoin backed by the US dollar to expand to other countries outside the Hong Kong market.

The firm also intends to form additional partnerships with industry players to further enhance its presence and broaden its reach across the crypto space.