HashKey Capital launches $500M fund to invest in Web3

Web3-focused asset manager HashKey Capital has received $500 million in commitment from sovereign wealth funds, family offices, and corporations for its new blockchain fund.

The Hong Kong-based digital assets and blockchain arm of Chinese conglomerate Wanxiang Group said its third fund will be financing outstanding crypto and blockchain initiatives around the world. Focusing on opportunities in emerging markets, the HashKey FinTech Investment Fund III taps into venture equity in toolings, infrastructure, and applications that could potentially be mass adopted.

Since its inception in 2018, HashKey Group has invested in some of the world’s biggest blockchain projects dealing in brokerage, custody, and staking. With more than $1 billion in client assets, its notable investments include cross-chain protocol Polkadot, crypto lender BlockFi, decentralized finance protocol Terra, non-fungible token and metaverse fund Animoca Brands.

The company, which is led by early Ether investor Deng Chao, also backs privacy tool Mask and blockchain node infrastructure provider Blockdaemon, amongst many others.

The newly raised capital will be used to fund entrepreneurs and startups that are leading the next wave of digital asset innovation. As such, Fund III provides investors with institutional-grade exposure to a full spectrum of blockchain technology and crypto assets.

“HashKey Capital weathered at least three cycles in the industry. From each unique experience, we gained important insights that will allow us to navigate through turbulence. We are one of the few crypto investors that have been granted a license for fund management involving digital assets in Hong Kong, with another approval in principle received for fund management in Singapore. HashKey was an early supporter of crypto and blockchain technology, therefore, we are pleased to take on this responsibility and work with our partners to establish the gold standard for the industry’s sustainable growth.” said Deng Chao, Head of HashKey Group Singapore and CEO of HashKey Capital.

“Most people from the industry recognize HashKey as a global pioneer investor, but few are truly aware that HashKey was the inspiration behind the name ‘Shanghai Upgrade’. As the earliest institutional investor in Ethereum and the hosting party of Devcon2, we have maintained since day 1 that the power of blockchain and crypto innovation can create a better future.” Dr. Xiao Feng, Chairman of HashKey Group notes. “Fund III will follow our investment principles and objectives while also looking for game-changers, those that will propel the industry forward into the next stage.”