ZA Bank launches cryptocurrency trading! Will CEX be fully attacked by banks?

ZA Bank has become the first virtual bank in Asia to offer cryptocurrency trading services, launching features to buy and sell Bitcoin and Ethereum, attracting young investors with low thresholds and fee discounts. (Background: Hong Kong cryptocurrency "OTC traders" will welcome licensing regulations: The SFC may work with customs for supervision) (Additional background: Comprehensive analysis of cryptocurrency/virtual currency regulation in Hong Kong: VASP licenses, stablecoins, digital HKD, tokenization... all at once) ZA Bank announced that starting today (25th), it will officially launch cryptocurrency trading services on its app. This makes it the first bank in Asia to allow retail users to directly trade Bitcoin and Ethereum, injecting new vitality into the Hong Kong virtual banking market. Lowering Fees ZA Bank has set a trading threshold of 70 USD or 600 HKD, allowing users to start trading by simply opening an investment account and completing a risk assessment. The fee structure is competitive: Commission: 1.99 USD or 15 HKD per transaction. Platform fee: 1.5% of transaction amount, with a minimum charge consistent with the commission. To attract more investors, the bank announced that from today until the end of June 2025, it will waive commissions and reduce the platform fee to 0.8% of the transaction amount. Young People as Core Customer Group According to ZA Bank's acting CEO, Wu Zhonghao, the bank currently has over 800,000 users, accounting for 13% of the bankable population in Hong Kong. Among them, the 18 to 30-year-old young demographic contributes a relatively high penetration rate, with one in four young people using ZA Bank's services. Wu Zhonghao believes that the cryptocurrency trading services can not only meet the needs of existing users but also attract more digital finance enthusiasts. ZA Bank achieved monthly profitability in July this year, and this new business may further drive revenue growth. As of the end of June 2024, ZA Bank's total assets reached 20 billion HKD, with a deposit balance of about 16.8 billion HKD (a year-on-year increase of 70%), and a total loan balance of about 5.619 billion HKD, with a loan-to-deposit ratio of 33.4%. The bank's revenue for the first half of the year reached 255 million HKD, a year-on-year increase of 45.9%, demonstrating stable growth momentum. Wu Zhonghao emphasized that the development of digital financial services must go through a natural process from innovators to mainstream consumers. He is confident about the prospects of cryptocurrency business, believing that this service will not only enhance user stickiness but also further drive ZA Bank's revenue and market position. Renaming to "Digital Bank" ZA Bank was established in 2017 and is one of the first eight banks in Hong Kong to obtain a virtual banking license. Since 2019, virtual banks have gradually entered the market and have accumulated a solid customer base and business model. HKMA President Yu Weiwen recently stated that the current number of virtual banking licenses is moderate, and there is no need to introduce new participants for now. At the same time, the HKMA is conducting a public consultation on renaming "virtual banks" to "digital banks" to better align with current business characteristics. Related Reports BSN partners with Flare Network! Hong Kong pilots "anonymized real-name system" DID innovative solutions USDC issuer Circle plans to enter Hong Kong: waiting for stablecoin regulations to be released, with strong backing from the mainland market The first【BlockTempo Hong Kong event #001】grandly debuted! Exploring new paradigms of community communication in Web3"ZA Bank launches cryptocurrency trading! Will CEX be fully attacked by banks?" This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).