ZA Global, the international business arm of insurtech firm ZhongAn Online P&C Insurance, has led a US$40 million Series A2 funding round for fintech firm RD Technologies.

The move is aimed at accelerating the development of a regulated stablecoin ecosystem and next-generation Web3 financial infrastructure in Hong Kong.

The company says its role as lead investor in the capital raise underscores its strong conviction in RD’s long-term potential and vision in the regulated stablecoin space.

This strategic investment not only provides critical capital support but also signals a strong commitment to shaping a compliant, innovative digital financial hub in the special administrative region, ZA Global says.

In conjunction with the funding, ZA Bank, ZA Global’s digital banking subsidiary, has signed a memorandum of understanding with RD, building on their partnership in reserve banking services established last year.

Under the new agreement, ZA Bank will continue to expand its support for reserve asset custody needs, reinforcing trust and transparency in stablecoin issuance. 

The virtual bank also plans to become a distributor of compliant stablecoin, helping the possible introduction of digital asset solutions. 

“As regulatory clarity and demand for compliant stablecoin solutions continue to grow, our partnership with RD marks a milestone in aligning innovation with compliance,” says ZA Global president Wayne Xu. “Together, we are shaping a secure and regulated digital finance ecosystem for Hong Kong and the wider region.”