A cryptocurrency payment platform based in Hong Kong has successfully concluded a $40 million Series A funding round, spearheaded by Lightspeed and backed by HSG and Galaxy Ventures.
The platform seeks to facilitate the use of cryptocurrencies in everyday purchases while making blockchain transactions as straightforward for consumers as traditional fiat transactions. In November 2023, it introduced its line of physical Visa cards enabling ATM cash withdrawals, accompanied by a virtual card compatible with digital payment systems such as Apple Pay and Google Pay.
In December 2024, the firm enhanced its blockchain integration by incorporating Solana, followed by the Ethereum layer 2 solution, Arbitrum, in February. Furthermore, it established a partnership with StraitX and Visa to facilitate retail crypto transactions in Singapore.
However, it seems that there are cross-border service limitations in place; visitors from outside Hong Kong are presented with a cautionary notice when they attempt to access the website.
Cross-border service restrictions are in effect, as visitors outside Hong Kong receive a notification. Source: Cryptocurrency Payment Platform
Growth of Crypto Payment Options in Asia, Highlighting Stablecoins
Hong Kong faces competition from several players; for example, Infini, which specializes in stablecoin-based payment services, allows users to earn yields on their transactions. However, it recently fell victim to a $50 million USDC exploit, reportedly executed by a rogue developer who exchanged USDC for DAI—a decentralized stablecoin that cannot be frozen like its centralized alternatives.
Related: Infini experiences $50M loss due to exploit; developer manipulation suspected
Unlike the price fluctuations seen with cryptocurrencies like Bitcoin or Ether, stablecoins provide a steadier option for those looking to use them for transactions, as they are structured to retain a value similar to their fiat equivalents.
Japan, ranked as the second-largest economy in Asia based on GDP, is making notable progress in the use of stablecoins. A recent analysis by a Tokyo-based research and consulting firm suggests that the Japanese government views stablecoins as a vital opportunity to tap into $14 trillion in household savings.
Japan is focusing on digital assets with the support of established financial institutions. Source: Tokyo-based Research Firm
The research firm emphasizes the role of Progmat as a significant entity in Japan’s digital asset landscape. Supported by Mitsubishi UFJ, Japan’s largest bank, Progmat adheres to the nation’s stringent regulatory standards, which require a 1:1 reserve backing. This ensures that established financial institutions in Japan lead the charge in digital asset management.
Conversely, China—Asia’s largest economy—has prohibited cryptocurrency trading and recognizes only the renminbi as its legal currency.
Magazine: Insights on Chinese traders and miners navigating around the country’s crypto ban