RD Technologies, a Hong Kong-based fintech startup founded by the former chief executive of the city’s de facto central bank, said on Wednesday it has raised about $40 million from investors amid its pursuit of a local stablecoin issuer license.

The Series A2 round was led by ZA Global, part of mainland Chinese insurer ZhongAn Online P&C Insurance that operates a Hong Kong digital bank, Chinese investment firms China Harbour International Finance and Bright Venture Capital, as well as U.S. digital asset-focused fund Hivemind Capital Partners. Other investors who joined the round include HSG (HongShan Capital Group) and the private equity fund of Chinese state-backed brokerage Guotai Junan International.

RD Technologies said the fresh funding will support the company to “drive the next phase of digital currency transactions and asset tokenization through secure, enterprise-grade infrastructure.” As part of the financing, the startup also agreed to partner with ZA Bank, the virtual bank subsidiary of ZA Global, to explore stablecoin applications in financial services such as reserve asset custody.

RD Technologies was founded in 2020 by Norman Chan, who served as chief executive of the Hong Kong Monetary Authority (HKMA) from 2009 to 2019 and the former Asia vice chairman of Standard Chartered Bank. It’s currently led by Rita Liu, the former CEO of Alipay’s U.K. unit. The startup operates a mobile wallet for enterprises, which allows domestic and cross-border payment as well as foreign exchange of multiple fiat currencies.

Its most recent fundraising was in September 2024, when it raised $7.8 million in a Series A1 round from investors including HSG, Hivemind Capital and Aptos Labs, a U.S. blockchain startup founded by ex-Meta employees who worked on the social media giant’s failed Diem stablecoin project.

RD Technologies’ latest funding round comes as the startup plans to apply for a stablecoin issuer license in Hong Kong. Starting August 1, the city will impose a new stablecoin regulation, which requires issuers of such fiat-pegged cryptocurrencies to obtain a license from the HKMA. More than 50 companies, including Chinese billionaire Jack Ma-backed Ant International and e-commerce giant JD.com, have reportedly expressed interest in applying for such a license. To boost its chance of success, RD Technologies last year joined the HKMA’s stablecoin regulatory sandbox scheme to test the cryptocurrency in applications such as cross-border payments and settlements.

Hong Kong’s move to regulate stablecoins, coupled with Bitcoin hitting a record high of $123,000 in July, has reignited investor interest in the crypto sector. Several digital asset-related stocks listed in Hong Kong have surged in recent months. Among them are Guotai Junan International, which skyrocketed more than 400% after the brokerage said it obtained regulatory approval to offer crypto trading services in Hong Kong in June, and ZhongAn Online P&C Insurance, which soared nearly 70% since Hong Kong announced the passage of the stablecoin bill in May, as investors sought to capitalize on its investment in RD Technologies.