Despite the ongoing crypto winter that has erased over $2 trillion from the market, global asset manager Hashkey Capital has announced the close of its third fund, “HashKey Fintech Investment III,” raising $500 million. The fund is dedicated to advancing crypto solutions, blockchain technology, and Web3 concepts.
Institutional Backing and Licensing Edge
Hashkey Capital, one of the largest crypto funds in Asia managing over $1 billion in assets, secured strong support from sovereign wealth funds, family offices, and corporations. Deng Chao, CEO of Hashkey Capital, stated: “We have weathered at least three cycles in the industry. From each unique experience, we gained important insights that will allow us to navigate through turbulence.” The firm holds a Hong Kong license for fund management involving digital assets and has received in-principle approval for fund management in Singapore, giving it a regulatory edge.
Focus on Infrastructure and Emerging Markets
The new fund will primarily invest in infrastructure, tools, and applications with mass adoption potential. According to Hashkey, “Fund III will provide investors with institutional-grade exposure to all facets of blockchain and crypto technologies,” with a particular emphasis on emerging markets where growth opportunities abound.
Major players continue to bet on crypto despite the downturn. Animoca Brands co-founder Yat Siu recently said at Davos that his firm aims to grow its portfolio by 30% by end of 2023. Hashkey’s fund positions itself as a long-term vehicle for institutional investors seeking exposure to the evolving digital asset ecosystem.
Portfolio and Strategic Partnerships
Crunchbase data shows Hashkey has made approximately 56 investments to date, including stakes in Aztec, Cosmos, Coinlist, Falcon X, Polkadot, and Animoca Brands. In December 2022, its Hashkey Digital Asset Group (HDAG) partnered with Hong Kong-based ZA International to explore digital assets and Web3 opportunities. HDAG also signed a deal with SEBA Bank to accelerate digital asset adoption in Hong Kong and Switzerland.
These moves underscore Hashkey Capital’s strategy of combining capital deployment with regulatory compliance and global partnerships, as it seeks to lead amid market uncertainty.