(Bloomberg) -- Gaorong Ventures has invested $30 million in the operator of Hong Kong’s biggest licensed crypto exchange, a rare example of a Chinese venture powerhouse dabbling into the $3 trillion digital asset arena.

Gaorong — the early backer of Chinese internet firms including Meituan and PDD Holdings Inc. — invested in HashKey Group at a pre-money valuation above $1 billion, according to people familiar with the matter. The valuation remains little changed from a year ago, when Hashkey raised $100 million and reached unicorn status, the people said, asking not to be identified discussing private information.

Crypto bets by Chinese investors are growing despite Beijing banning the asset class in 2021. Still, it’s rare for the country’s venture capital firms to make direct investments into a sector known for price volatility and speculation. Tencent Holdings Ltd. recently invested in crypto market maker Wintermute Trading Ltd. Hongshan, formerly known as Sequoia China, is an investor in web3 outfits like Animoca Brands.

A HashKey spokesperson said Gaorong’s $30 million investment was at a post-money valuation of close to $1.5 billion. A Gaorong spokesperson declined to comment.

Crypto startups raised $10 billion in funding last year, down slightly from the $10.3 billion in 2023, according to Pitchbook data. Venture capitalists adopted a wait-and-watch approach even as the price of Bitcoin, the original cryptocurrency, more than doubled.

HashKey Group operates one of Hong Kong’s first two licensed crypto bourses, and its business lines include offering crypto trading, venture funding and asset management. HashKey Group started in 2018 and is based in Hong Kong with operations in Singapore, Japan and Bermuda. HashKey’s Chairman Xiao Feng delved into blockchain investment after his time with Chinese cars-to-energy conglomerate Wanxiang Group, which is a key backer of HashKey.