IDA Raises $6M to Launch Hong Kong’s First Stablecoin

IDA, a cryptocurrency firm based in Hong Kong, has successfully secured $6 million in seed funding to create and introduce HKDA, the region’s first stablecoin. Hong Kong, one of Asia’s developing crypto hubs, is steadily establishing its presence in the global cryptocurrency landscape, alongside the United Arab Emirates (UAE).

Improving Cross-Border Trade Efficiency

In a recent announcement, IDA disclosed that the newly raised capital will be used to develop HKDA, a stablecoin backed by fiat currency. Prominent investors in this funding round include Hack VC, Yolo Investments, Chorus One, and Solana’s Raj Gokal, among others.

🌟 Big milestone to #IDA!

We’ve secured USD 6 million in seed funding to bring our fiat-referenced stablecoin, #HKDA, to life soon! Thank you all our investors and strategic blockchain partners!

Let's unleash the power of stablecoins! 🚀

Full release: https://t.co/EarK9hyUr1 pic.twitter.com/7Yx84HLiq7

— IDA (@IDAfi24) September 2, 2024

HKDA represents IDA’s initial venture into the fiat-backed stablecoin market, though a specific launch date has not been set. Lawrence Chu, IDA’s co-founder and CEO, highlighted that with the stablecoins market currently valued at approximately $170 billion, there is potential for it to exceed $3 trillion within the next five years.

Chu further stressed that this rapid expansion will elevate the importance of stablecoins within the broader digital currency ecosystem. IDA’s mission is to enhance cross-border trade efficiency using blockchain technology.

Sean Lee, IDA’s co-founder and CSO, also mentioned that the company’s immediate goal is to drive mass adoption and help businesses integrate seamlessly between Web2 and Web3. To achieve these goals, IDA is actively collaborating with the Hong Kong Monetary Authority (HKMA), the Financial Services and the Treasury Bureau (FSTB), and other local partners to issue regulated stablecoins in Hong Kong.

Significant Growth in Stablecoins

As digital currencies gain traction, stablecoins have seen significant growth. Forbes reports that the total market capitalization of stablecoins is currently around $171 billion, with Tether (USDT) leading at $118.27 billion, followed by USDC at $34.77 billion.

In related news, Tether recently announced plans to launch a new stablecoin pegged to the UAE dirham (AED). This initiative, in partnership with Phoenix Group PLC and Green Acorn Investments, will offer a stable and transparent digital asset backed by liquid reserves in UAE dirhams, similar to its existing USDT, which is pegged to the US dollar.