- ZA Group led a $40 million Series A2 funding round in RD Technologies, a Hong Kong-based stablecoin company.
- RD Technologies is one of three projects participating in Hong Kong’s new stablecoin regulatory Sandbox.
- With new regulations taking effect, the Hong Kong Monetary Authority expects only a select few stablecoin issuers to receive licenses in the early stages.
- ZA Bank signed an agreement to support RD Technologies by providing custody and stablecoin distribution services.
- Other investors in the funding round include China Harbour, Bright Venture, Hivemind, HSG, Eternal Digital, CMSC Partners, and Guotai Junan International Private Equity Fund.
ZA Group has led a $40 million Series A2 investment in RD Technologies, a company involved in Hong Kong’s stablecoin regulatory trial. The announcement comes as Hong Kong enacts new stablecoin legislation, aiming to create a controlled environment for digital currency innovation.
RD Technologies is among three selected participants in Hong Kong’s stablecoin sandbox, which allows companies to test and develop stablecoins under strict government oversight. The other two projects include a joint venture between Standard Chartered, HK Telecom, and Animoca Brands, and JD Coinlink, which is part of JD.com, a major e-commerce firm in China.
According to the Hong Kong Monetary Authority, the stablecoin sandbox has set high compliance standards, including rules that require companies to identify every stablecoin holder. These tough requirements mean only a few applicants are expected to receive licensure in the early stages. Sandbox participants like RD Technologies, which issues the HKDR stablecoin, are seen as leading candidates for future approval. Hong Kong’s first approved stablecoin is expected early next year.
ZA Bank, owned by ZA Group and recognized as Hong Kong’s first and largest digital bank, has signed a memorandum of understanding with RD Technologies. Under this agreement, ZA Bank will provide custody services for RD’s stablecoin reserves and will distribute the stablecoin. The bank was also the first in Asia to offer retail crypto services.
Investment support for the funding round also comes from China Harbour, Bright Venture, Hivemind, HSG, Eternal Digital, CMSC Partners, and Guotai Junan International Private Equity Fund. ZA Group is controlled by ZhongAn Insurance—a Chinese company established by the chairmen of Alibaba, Tencent, and PingAn Insurance.
While the stablecoin sector is drawing attention due to the new regulations, Hong Kong officials warn that not all applicants will succeed, especially as compliance checks become stricter. Companies outside the official sandbox may face delays or rejections.
Recently, there were Internet reports of a JD trademark registration tied to stablecoin efforts, but these have not been confirmed. The trademark details do not match expectations, raising concerns about their authenticity.
Hong Kong’s approach focuses on transparency and compliance, especially as stablecoins—digital assets pegged to traditional currencies—become more integrated into financial systems.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- China Jails Tech Exec for $19.5M Crypto Laundering, Recovers $11M
- Nvidia H20 Orders Soar as US Lifts Chip Export Ban to China
- Samourai Wallet Co-Founders to Plead Guilty in Mixing Case
- MARA Soars After Record Q2 Revenue, Becomes No. 2 Bitcoin Holder
- Microsoft Nears New OpenAI Deal, Eyes Access to Latest AI Models
