Hong Kong-based RD Technologies has raised $40 million in Series A2 funding as the city prepares to launch its stablecoin licensing regime on August 1, 2025.
The round positions the company among the frontrunners competing for one of the few expected licenses.
Key Takeaways
- RD Technologies raised $40 million from HongShan Capital, ZA Global, and other investors
- The company is competing with 50+ applicants for 2-4 expected stablecoin licenses
- Hong Kong's stablecoin regulation takes effect August 1, 2025, requiring minimum HK$25 million capital
- RD Technologies' HKDR stablecoin is already testing in HKMA's regulatory sandbox
- Company founded by ex-HKMA chief Norman Chan, led by former Alipay UK CEO Rita Liu
RD Technologies Announces $40 Million Series A2 Funding Round
On July 30, 2025, RD Technologies closed a $40 million Series A2 funding round.
This brings total funding to over $47.8 million, including the $7.8 million Series A1 from September 2024.
The company will use the capital to strengthen its digital currency infrastructure and prepare for Hong Kong's stablecoin license application process.
RD Technologies also announced a partnership with ZA Bank to develop stablecoin custody and distribution services.
Who Led the Investment Round?
Primary Investors
The Series A2 attracted both Chinese and international investors:
- ZA Global: Digital banking arm of ZhongAn Online P&C Insurance
- HongShan Capital Group: Previously Sequoia Capital China
- China Harbour International Finance
- Bright Venture Capital
- Hivemind Capital Partners: US digital asset fund
- Guotai Junan International: Chinese state-backed brokerage's PE fund
Previous Round Investors
The September 2024 Series A1 included:
- Aptos Labs (founded by ex-Meta Diem team)
- HashKey Group
- Other Web3-focused funds
RD Technologies Company Overview
Leadership Team
Dr. Norman Chan - Founder & Chairman
- CEO of Hong Kong Monetary Authority (2009-2019)
- Former Asia Vice Chairman at Standard Chartered Bank
Rita Liu - CEO
- Former CEO of Alipay UK
- 10 years at Ant Group building European operations
- Previously led UK crypto firm Mode Global Holdings
Product Portfolio
- HKMA-licensed Stored Value Facility (SVF0016)
- Multi-currency business accounts
- Cross-border payment processing
- Real-time foreign exchange
HKDR Stablecoin
- Hong Kong Dollar-backed 1:1
- Public blockchain infrastructure
- Currently in HKMA sandbox testing
- Designed for business payments and tokenization
RD ezLink
- Business KYC utility
- Partners include CMB Wing Lung Bank, Bank of East Asia
Hong Kong's Stablecoin Regulatory Framework
Timeline
- May 21, 2025: Legislative Council passes Stablecoins Ordinance
- August 1, 2025: Regulation takes effect
- August 1-September 30, 2025: Application window
License Requirements
Financial
- HK$25 million minimum capital
- 1:1 backing with approved assets
- Assets must be bank deposits, government securities, or cash
Operational
- Physical Hong Kong presence
- Daily reserve reporting
- Third-party audits
- Public disclosure of reserves
Compliance
- AML/KYC checks for transactions over HK$8,000
- Transaction monitoring systems
- Regular HKMA reporting
Penalties
- Fines up to HK$5 million
- Prison terms up to 7 years
- Permanent industry bans
The Race for Hong Kong Stablecoin Licenses
License Allocation
HKMA will grant 2-4 licenses initially from 50+ applicants.
Only companies demonstrating viable use cases and sustainable operations will qualify.
Major Competitors
- Ant Group's global arm
- Applying in Hong Kong, Singapore, Luxembourg
- Building on Alipay infrastructure
- Through Jingdong Coinlink Technology
- "Jcoin" trademark registered
- Claims 90% cost reduction for cross-border payments
- Partnering with Animoca Brands
- Focus on institutional clients
- Traditional banking integration
- USDC issuer ($33 billion market cap)
- Working with Hong Kong's note-issuing banks
- Planning HKDCoin
Sandbox Participants
Three groups currently test in HKMA's sandbox:
- RD InnoTech Limited (RD Technologies)
- Jingdong Coinlink Technology (JD.com)
- Standard Chartered consortium
RD Technologies' Strategic Advantages
Regulatory Experience
Norman Chan's decade leading HKMA provides direct insight into regulatory expectations and compliance standards.
Existing Licenses
The company already holds an SVF license, demonstrating operational capability in Hong Kong's financial sector.
Early Testing
Sandbox participation since 2024 allows real-world testing and regulatory feedback before formal applications.
Strategic Partnerships
ZA Bank partnership ensures institutional-grade custody and distribution infrastructure.
Proven Leadership
Rita Liu built Alipay's European expansion, bringing international payments expertise.
Market Impact and Investor Sentiment
Stock Market Response
Hong Kong's stablecoin push has driven significant gains:
- Guotai Junan International: +400% after crypto license approval
- ZhongAn Online: +70% since May 2025
- Bitcoin reached $123,000 in July 2025
Industry Trends
The funding signals key shifts:
- Traditional finance entering digital assets
- Hong Kong competing with Singapore for regional leadership
- Mainland Chinese companies using Hong Kong for global crypto access
- International investors backing Asian Web3 development
Hong Kong's Vision as Asia's Web3 Hub
Government Support
- HK$50 million to Cyberport for Web3 development
- 270+ Web3 companies supported
- Clear regulatory frameworks for digital assets
- First Asian spot Bitcoin/Ethereum ETFs
Competitive Position
Hong Kong offers:
- Established financial infrastructure
- Access to mainland China markets
- English common law system
- Deep capital markets
- Growing developer community
Financial Secretary Paul Chan stated Hong Kong aims to become the premier Asian hub for regulated digital assets by 2026.
What's Next for RD Technologies?
Near-term Plans
- Submit license application by August 31, 2025
- Expand HKDR payment partnerships
- Launch tokenization services
- Scale transaction capacity
Long-term Goals
- Lead HKD stablecoin market
- Enable Web2-to-Web3 transitions for businesses
- Expand across Greater Bay Area
- Build DeFi-compatible infrastructure
CEO Rita Liu: "We're building the payment rails for Hong Kong's digital economy."
Conclusion
RD Technologies $40 million funding round signals a critical juncture for Hong Kong's digital asset market.
With 50+ companies competing for just 2-4 stablecoin licenses, the stakes couldn't be higher.
The company's advantages (regulatory expertise through founder Norman Chan, existing financial licenses, and early sandbox participation) position it well against giants like Ant Group and JD.com.
Success would validate Hong Kong's compliance-first approach to Web3 innovation.
As August 1, 2025 approaches, the licensing outcomes will shape Asia's digital finance landscape.
For continued coverage of this defining moment keep a close watch at the stablecoin news.
The race for Hong Kong's first licenses remains the story to watch.
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FAQs:
1. When can RD Technologies apply for a stablecoin license?
Applications open August 1, 2025. RD Technologies plans to submit by August 31 for early HKMA feedback.
2. How much has RD Technologies raised in total?
$47.8 million across two rounds: $7.8 million Series A1 (September 2024) and $40 million Series A2 (July 2025).
3. Who founded RD Technologies?
Dr. Norman Chan, former Hong Kong Monetary Authority CEO (2009-2019), founded the company in 2020.
4. What is HKDR?
HKDR is RD Technologies' Hong Kong Dollar stablecoin, maintaining 1:1 value with HKD for stable digital payments.
5. How many companies are competing for licenses?
Over 50 companies have expressed interest, but HKMA will issue only 2-4 licenses initially.
6. What are the minimum requirements for a license?
HK$25 million capital, full asset backing, Hong Kong presence, and comprehensive compliance systems.
