Hong Kong's DACC Raises $10mn to Bridge Blockchain Payments

Hong Kong-listed Digital Asset Clearing Center (DACC) has raised $10mn from strategic investors to build faster and cheaper alternatives to legacy bank transfers in the $214tn cross-border payments market.

The round included Conflux Network (CFX), the only regulatory-compliant public blockchain in mainland China, backed by the Shanghai government; Transaction Technologies Limited; and Chinese-listed firms Kingdom Limited and Global InfoTech, according to a 13 May statement shared with Sandmark.

DACC, led by Larry Li, former CEO of Swift North Asia, provides compliant clearing, settlement, and record-keeping for tokenized assets, connecting Hong Kong to China's digital yuan ecosystem.

The funding comes as Hong Kong regulators, stung by the 2023 JPEX collapse, push for stricter separation of trading, clearing, and custody. Draft legislation for a stand-alone virtual asset custody license is expected to be presented to the Legislative Council.