As a seasoned cryptocurrency investor with roots deeply entrenched in Asia, this latest development surrounding IDA and their stablecoin HKDA has piqued my interest significantly. Having witnessed the meteoric rise and fall of various digital assets over the years, I can attest to the importance of solid partnerships and regulatory compliance in ensuring a project’s longevity and success.
A company specializing in digital currencies, located in Asia, named IDA, has successfully finished a $6 million investment round for startups (seed funding). This money will be used to advance the creation and release of their initial stablecoin, HKDA, in Hong Kong.
Based on a news article published on September 2nd, the funding round was primarily funded by two well-known investors: CMCC Global, who invested an unspecified sum using their Titan Fund, and Hashed, a venture firm recognized for supporting budding blockchain projects. Additionally, Hack VC, Anagram, GSR, Protagonist, and several angel investors, including Raj Gokal, Co-founder of Solana, also took part in the round.
🌟 Big milestone to #IDA!
We’ve successfully raised $6 million in initial financing to make our fiat-backed stablecoin, #HKDA, a reality in the near future! A big thank you to our investors and strategic blockchain collaborators for their support!
Let’s unleash the power of stablecoins! 🚀
Full release:
— IDA (@IDAfi24) September 2, 2024
IDA Partners with Leading Blockchain Networks
Through this investment, IDA plans to create their inaugural stablecoin, HKDA, which will maintain a fixed value equivalent to the Hong Kong Dollar (HKD). This digital currency will be fully secured by reserve assets kept in trusted, regulated, and authorized financial institutions based within Hong Kong.
The firm declared that they will construct HKDA, a system, over multiple public blockchain networks, aiming to streamline cross-border transactions and assist companies in seamlessly moving from conventional financial systems towards the dynamic Web3 marketplace.
To facilitate seamless integration, accessibility, and trading flexibility for HKDA, IDA has collaborated with various blockchain organizations such as Solana, Polygon, Aptos, and Mantra. These blockchains will assist in the issuance, withdrawal, and broad acceptance of HKDA tokens.
By having these networks backing the stablecoin, crypto traders in Hong Kong can enjoy the freedom to utilize their preferred blockchain platform for handling HKDA transactions. This means they can conveniently purchase, trade, and swap the digital currency for other cryptos.
HKDA to Go Live This Year
Beyond these alliances, IDA is collaborating intimately with the Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) to make sure the stablecoin adheres to regional laws and regulations.
At present, the HKDA project is still being formed, and it’s anticipated that preliminary testing will commence on test networks shortly, even though specific details about the schedule have yet to be revealed. Upon the conclusion of the beta testing stage, the stablecoin is slated for official release later in this year.
According to Sean Lee, Co-founder and Head Strategist at IDA, we aim to debut our primary network by the close of this current year, with a focus on gaining regulatory understanding around early 2025.
IDA to Expand Outside Hong Kong
Given the Hong Kong government is actively developing regulations for stablecoins, Ryan Kim, co-founder at Hashed, expects IDA to lead the impending changes. He’s confident that the company possesses the necessary skills to seamlessly connect traditional and digital financial systems, potentially transforming finance not just in Asia, but globally as well.
After debuting HKDA in Hong Kong, IDA intends to unveil a new stablecoin tied to the U.S. dollar as part of an effort to broaden its presence into markets beyond Hong Kong.
Additionally, the company plans to establish more collaborations with key figures in the cryptocurrency sector, aiming to strengthen its position and extend its influence throughout the digital currency market.
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2024-09-02 14:50