Digital asset financial services firm HashKey Group is planning to raise funds at $1 billion valuation, according to a Bloomberg report on Friday.

The Asia-based HashKey is in preliminary talks to raise between $100 million to $200 million, according to the report, which cited people familiar with the matter.

The firm is looking to capitalize on Hong Kong's re-emergence in recent months as a potential crypto hub as the city has looked to formulate a clear regulatory structure for digital assets.

Hong Kong is looking to attract crypto firms to its shores as a means of generating greater investment and capital, following a few years of restrictions related to COVID taking their toll on the economy.

HashKey was one of the first firms to be approved to operate a virtual asset trading platform by Hong Kong's Securities and Futures Commission (SFC), subsequently announcing plans last month to introduce a regulated exchange in Q2 of this year.

The company did not immediately respond to CoinDesk's request for comment.

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