Hong Kong-based cryptocurrency payment platform RedotPay has secured $40 million in a Series A funding round led by Lightspeed, with additional backing from HSG and Galaxy Ventures.
The funding aims to accelerate RedotPay’s expansion in Asia, enhancing its blockchain integrations and increasing the accessibility of crypto payments for everyday transactions.
RedotPay is positioning itself as a bridge between traditional and digital finance, allowing users to conduct seamless cryptocurrency transactions similar to fiat payments.
The company has launched a range of payment options, including physical Visa cards for ATM cash withdrawals and a virtual card compatible with Apple Pay and Google Pay. Users can apply for both cards through the RedotPay app, where identity verification and a cryptocurrency deposit are required.
To further its payment infrastructure, RedotPay expanded its blockchain support by integrating Solana in December 2024 and Ethereum’s layer 2 Arbitrum in February.
It has also formed strategic partnerships with Visa and StraitX to facilitate retail crypto payments in Singapore. Despite these advancements, RedotPay maintains cross-border service restrictions, limiting access to users outside Hong Kong.
The Rise of Crypto Payments in Asia
Asia is witnessing increased adoption of cryptocurrency payment solutions, with stablecoins emerging as a preferred option due to their price stability. RedotPay is not alone in this market shift.
In November 2024, Crypto.com, a Singapore-based digital asset trading platform, partnered with Triple-A to enable direct crypto payments without requiring fiat conversion.
However, the sector remains volatile. Hong Kong-based Infini, a stablecoin-focused payment provider, suffered a $50 million USDC exploit allegedly carried out by a rogue developer. The incident highlights the risks associated with digital asset payments despite the growing adoption.
Japan, the region’s second-largest economy, is also exploring stablecoins to modernize its financial ecosystem. According to research by Tokyo-based Yuri Group, the Japanese government sees stablecoins as a tool to unlock $14 trillion in household savings.
Leading this initiative is Progmat, a Mitsubishi UFJ-backed digital asset platform that operates under strict regulations requiring a 1:1 reserve backing.
China, in contrast, has banned cryptocurrency trading, reinforcing the renminbi as the country’s sole legal tender. This policy has effectively excluded Chinese businesses from the growing crypto payment industry.
Security and Compliance in RedotPay’s Ecosystem
RedotPay ensures compliance with Hong Kong’s financial regulations and has implemented security protocols to protect user assets. The company collaborates with third-party providers such as Sumsub for Know Your Customer (KYC) verification and Beosin for transaction monitoring. RedotPay maintains a separation between user wallets and issued cards to prevent asset freezes from affecting stored funds.
All user assets are held by a licensed Trust or Company Service Provider (TCSP) in Hong Kong, ensuring ownership protection even in the event of company bankruptcy. RedotPay also adheres to strict jurisdictional limitations, requiring users to review service availability before applying for its products.
In December 2024, RedotPay deepened its blockchain capabilities by integrating with Solana, aiming to connect traditional finance with cryptocurrency. As part of this initiative, the company launched a promotional campaign offering a 60% discount on virtual card applications for users who deposited at least 10 USDC or USDT via the Solana network. Additionally, RedotPay engaged the Solana community with airdrops of discounted virtual cards, encouraging wider adoption.
With its latest funding, RedotPay is poised to scale its services further, strengthening its foothold in the Asian market amid increasing competition and regulatory scrutiny.
