Hata.io, a pioneering digital asset exchange and brokerage firm in the Asia-Pacific region, has successfully raised $4.2 million in seed funding. The newly secured capital will be used to develop new products and grow Hata’s user base across Asia, further establishing the platform’s presence in the digital asset trading industry.

Hata stands out in Malaysia as the only exchange regulated by both the Securities Commission Malaysia and the Labuan Financial Services Authority. This dual-license positions Hata as a leading exchange that caters to both Malaysian users and international digital asset investors. Malaysia is home to a growing base of over 840,000 digital asset investors, contributing to an annual trading volume of more than RM21 billion on local exchanges.

Vision and Leadership

Founded by an experienced team of industry experts, Hata’s leadership includes CEO David Low, CTO KK Chong, and CRO Darien Ng. David Low, who previously served as the General Manager for Luno’s Asia Pacific operations and is a qualified lawyer, now leads Hata’s mission to bridge the gap between fiat and digital currencies in Malaysia and beyond. KK Chong, the Chief Technology Officer, is a former university lecturer and co-founder of a blockchain solutions company, while Darien Ng, the Chief Risk Officer, has over 15 years of experience in the tech sector and previously co-founded a blockchain solutions company.

Their combined expertise in digital exchange operations and regulatory compliance has enabled Hata to cater to both retail and institutional investors who prefer to trade in fiat currencies such as the Malaysian Ringgit (MYR) and the US Dollar (USD).

Strategic Seed Fundraising

The seed funding round was led by two prominent US-based institutional investors, Castle Island Ventures and Cadenza Ventures, who will also take seats on Hata’s board. Castle Island Ventures, founded by Nic Carter and Matt Walsh, is known for investing in digital asset infrastructure, with previous investments in companies such as Yellowcard, BlockFi, and Indonesia’s Pintu. Nic Carter praised Hata’s approach, highlighting the company’s regulatory framework and strong potential in Southeast Asia’s growing blockchain market.

“Malaysia and the broader Southeast Asia region is the global epicenter of blockchain adoption,” said Carter. “We believe Hata is well-positioned to succeed, thanks to its innovative product focus and regulatory approach.”

Cadenza Ventures, led by managing partners Kumar Dandapani and Max Shapiro, also brings substantial expertise in blockchain and fintech investments, having previously invested in leading exchanges such as CoinDCX in India, VALR in South Africa, and Rain in the Middle East. Max Shapiro echoed the sentiment, expressing confidence in Hata’s ability to drive growth in Malaysia’s digital asset market.

“Hata’s innovative approach and commitment to user engagement will drive the next wave of growth in Malaysia’s digital asset market,” said Shapiro. “We are excited to work closely with the team as they navigate this evolving landscape.”

Expansion and Market Position

The capital infusion will allow Hata to expand its offerings, making digital assets more accessible and affordable for users across Asia. The company plans to leverage its dual-licensed status to attract both retail and institutional investors who are looking for a secure and compliant platform to trade digital assets in fiat currencies.

Hata’s leadership is focused on increasing the platform’s user base and offering a wide range of digital assets at competitive rates. The company already boasts the lowest trading fees in Malaysia and offers the most extensive selection of digital assets, making it an appealing choice for both new and seasoned investors.

To further enhance user engagement, Hata has also introduced an affiliate program that incentivizes users by sharing 30% of the trading fees generated from their referrals. This initiative encourages community participation and fosters a collaborative environment for digital asset trading.

Investor Confidence and Previous Funding

This latest seed round follows a previous pre-seed round in which Hata secured MYR 3 million from reputable angel investors in the fintech community, including 1337 Ventures and Raja Hamzah. The strong backing from leading venture firms in the US further validates Hata’s strategic vision and long-term potential.

With this new funding, Hata is poised to accelerate its growth, offering innovative solutions to meet the increasing demand for digital assets in the region. The company’s regulatory compliance, low trading fees, and user-centric approach make it a formidable player in the fast-evolving digital asset landscape.

Hata’s recent seed funding marks a significant milestone in its journey to democratize access to digital assets in Southeast Asia. With a robust regulatory framework, experienced leadership, and backing from top-tier investors, the platform is well-positioned to lead the next phase of growth in the region’s digital asset market.

As Hata expands its product offerings and user base, it aims to create a secure, efficient, and accessible platform for all investors, whether they are seasoned traders or newcomers to the world of digital assets.