HelloGold Gets a Golden Hello with Successful Series A Funding From 500 Startups

The startup launched GOLDX in January, an ERC20 token built on Ethereum and designed to comply with Shariah law. Each token is backed by 99.9% investment-grade gold. Smart contracts on the platform digitize the gold and allow it to trade on any cryptocurrency exchange supporting GOLDX. Users can trade across multiple exchanges rather than conducting all transactions through HelloGold's app.

CEO and co-founder Robin Lee called the 500 Startups backing validation of his team's vision. "We're honoured to have 500 Startups support HelloGold as we use blockchain to reduce barriers and accelerate access to more affordable financial products in Asia," Lee said. "By integrating blockchain into the HelloGold platform, customers will benefit from greater transparency, better security, and greater flexibility."

Lee views blockchain as a vehicle for expansion across the region. "In addition to providing customers with more options and freedom beyond cash, blockchain will enable HelloGold to scale faster and have a lower cost base, allowing us to reach a wider demographic of underserved and unbanked markets," he said. "With Asia making up 71 per cent of the gold market in 2016, gold is a powerful means of wealth preservation and financial inclusion."

"We recognised HelloGold's potential early on and nominated them to the TenxClub, an initiative by the Malaysian Ministry of Finance to support Malaysian startups with demonstrated ability to multiply and scale internationally," said Kailee Ng, a spokesperson for 500 Startups. "Our investment in HelloGold aligns well with our global initiatives such as the new Blockchain Track launched in San Francisco in March."

Investors poured more than $900 million into blockchain companies in 2017, excluding ICOs. The sector is expected to attract more funding through 2018, with momentum building in the first quarter.