Norman Chan, Founding Chairman of RD Technologies.
Anthony Kwan/Bloomberg
RD Technologies, a Hong Kong-based Fintech startup founded by the city’s former former CEO of the central bank, said Wednesday it has raised about $40 million from investors due to its pursuit of a local Stablecoin issuer license.
The A2 Series is led by ZA Global, part of China’s China Insurance Company Online P&C Insurance Company, which operates Hong Kong Digital Bank, Chinese investment firm China Port International Finance and Bright Venture Capital, and U.S. digital asset-focused fund Hivemind Capital Partners. Other investors joining the round include HSG (Hongshan Capital Group) and the private equity fund of Guotai Junan International, a state-backed brokerage memorabilia.
RD Technologies said the new funding will support the company to “drive the next phase of digital currency transactions and asset tokenization through secure, enterprise-level infrastructure.” As part of the financing, the startup also agreed to work with ZA Bank, a virtual banking subsidiary of ZA Global, to explore stable applications in financial services such as Reserve Asset Custody.
RD Technologies was founded in 2020 by Norman Chan, who served as CEO of the Hong Kong Monetary Authority (HKMA) from 2009 to 2019 and served as former Vice Chairman of Asia at Standard Chartered Bank. Currently, it is led by Rita Liu, former CEO of Alipay UK division. The startup operates a mobile wallet for businesses that allows for domestic and cross-border payments as well as forex exchanges in multiple fiat currencies.
Its latest fundraising campaign was in September 2024, when it raised $7.8 million from the A1 series of investors including HSG, Hivemind Capital and Aptos Labs, a U.S. blockchain startup founded by former Meta employees that worked on the social media giant’s failed Diem Stablecoin project.
RD Technologies’ latest funding round is due to startups planning to apply for a Stablecoin issuer license in Hong Kong. Starting August 1, the city will implement a new Stablecoin statute that requires issuers of such Fiat cryptocurrencies to obtain licenses from HKMA. More than 50 companies, including Ant International, supported by Chinese billionaire Jack Ma, and e-commerce giant JD.com, reportedly expressed interest in applying for the license. To increase the chances of success, RD Technologies joined HKMA’s Stablecoin regulatory sandbox program last year to test cryptocurrencies in applications such as cross-border payments and settlements.
Hong Kong’s move to regulate stablecoins, coupled with Bitcoin, reignited investor interests in the cryptocurrency space at a record $123,000 in July. Several digital assets-related stocks listed in Hong Kong have soared in recent months. Among them is Guotai Junan International, which said the broker received regulatory approval in June to provide cryptocurrency trading services in Hong Kong in June, while Zhongan Online P&C Insurance soared nearly 70% since Hong Kong, with investors announced in May’s announcements since May’s announcements to the STABLECOIN bill for May.
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