As Bitcoin prices are about to break through the $100,000 mark, Hong Kong's crypto market is also welcoming multiple historic milestones. Last year, when people thought of the relationship between Hong Kong banks and cryptocurrencies, they often thought of issues like 'difficulties in opening accounts' and 'channels not being opened'.
But just a year later, banks not only support cooperation with compliant exchanges for deposits and withdrawals but also cooperate with compliant exchanges to 'personally enter the field' to open virtual asset trading channels. This is a significant step forward and also provides a glimpse into the vigorous development of Hong Kong's Web3 industry.
Today, Hong Kong's largest licensed virtual asset exchange, HashKey Exchange, announced the launch of HashKey Pro, assisting ZA Bank to become the first bank in Asia to offer retail virtual currency trading. This move, through the deep integration of virtual banks and the virtual asset ecosystem, will trigger a 'hive effect' in Hong Kong's virtual asset market—by linking virtual banks, brokerages, and other institutions, it continuously injects liquidity and trust into the Hong Kong virtual asset market. This model will provide a new paradigm for the reshaping of virtual asset industry rules and ecological development, helping Hong Kong secure an important position in the global virtual asset market competition.
From 'indirect channel' to 'direct channel', a 'big step' from traditional finance to virtual currency.
The rush of traditional financial institutions into the market is no longer news.
As early as 2021, over 55% of the world's top 100 banks had ventured into virtual asset business, including Bitcoin trading, custody services, and portfolio optimization. JPMorgan's Onyx digital asset platform has processed over $50 billion in digital asset transactions; Goldman Sachs saw a 42% year-on-year increase in virtual asset trading volume in the first quarter of 2024, further attracting the attention of institutional investors.
Hong Kong is also closely following international crypto trends, continuously optimizing regulatory policies. The implementation of the Virtual Asset Service Provider (VASP) regulations and the upgrade of the Type 9 Financial License mark a unique balance between compliance and innovation in Hong Kong, providing a clear legal framework for the development of the virtual asset industry. Under this policy guidance, traditional financial institutions in Hong Kong are actively expanding virtual asset businesses. Traditional brokerages such as Tiger Brokers and Victory Securities are the first to offer virtual asset investment services to professional investors; Hang Seng Bank and HSBC are exploring virtual asset custody functions.
However, it is worth mentioning that traditional financial institutions often rely on indirect methods such as ETFs to provide services when exploring this emerging field. In the early stages, this model can open the door to the virtual asset market for institutional clients, but as the market develops, its limitations become increasingly prominent. High management fees, trading lag, and insufficient control over user assets make it difficult for these methods to meet the increasingly complex market demands. In addition, traditional virtual asset services such as custody and transaction matching, while emphasizing safety and compliance, struggle to meet institutional clients' higher requirements for efficiency and flexibility.
HashKey Pro launched by HashKey Exchange provides an efficient 'direct channel' for financial participants such as virtual banks, brokerages, and payment institutions.
Through HashKey Pro, financial institutions no longer need to redevelop complex systems. With one click, they can complete user asset custody, trading, and clearing through HashKey Exchange, a licensed exchange.
The feasibility of this solution has been fully validated in the cooperation between HashKey Exchange and ZA Bank. As Asia's first virtual bank to offer retail virtual asset trading services, ZA Bank relies on HashKey Pro to successfully launch Bitcoin and Ethereum trading functions within its app, achieving seamless conversion with fiat currency. This cooperation not only expands ZA Bank's digital financial service boundaries but also seizes the opportunity in the virtual asset market.
At the same time, HashKey Pro is also demonstrating its broader applicability in the brokerage field. Hong Kong brokerages such as Victory Securities and Ade Securities are directly connecting to the virtual asset market through HashKey Pro, providing efficient trading solutions for high-net-worth clients and institutional users.
Linking tens of millions of financial users, HashKey Pro's 'hive effect' has begun.
The roles of traditional financial institutions such as virtual banks and brokerages are undergoing profound changes. The core significance of HashKey Pro is not only as a direct channel but also in helping link traditional financial institutions with the virtual asset market. Through technological standardization and service modularization, it helps virtual banks, brokerages, and payment institutions quickly integrate virtual asset trading services, enabling these institutions to participate in this emerging market with lower technical and compliance costs. This involves not only the 4 million Hong Kong stock investors but also tens of millions of people trading in banks.
Currently, HashKey Pro has established cooperation with more than ten traditional financial institutions such as ZA Bank, Victory Securities, and Ade Securities. The 'hive effect' behind HashKey Pro is not only reflected in the scale of cooperative institutions but also in its profound impact on the market. With each new institution joining, market liquidity continues to grow while the demonstration effect will attract more traditional financial institutions to overcome technological and compliance barriers, accelerating their entry into the virtual asset field. This virtuous cycle will effectively break down the barriers between traditional financial institutions and the virtual asset industry, promoting their deep integration and accelerating Hong Kong's financial development and status enhancement.
The impact of this synergistic effect has exceeded the local market in Hong Kong, and Hong Kong is becoming a benchmark for financial institutions in other regions.
From initially providing users with simple fiat deposit and withdrawal services to now directly entering the virtual asset trading field, they are transforming from supporters of the market to deep participants. Success stories from institutions like ZA Bank and Victory Securities indicate that the boundaries between traditional finance and the virtual asset market are gradually blurring, and this transformation is reshaping the entire industry's ecology.
In fact, this trend is not unique to Hong Kong. Worldwide, traditional financial institutions represented by banks are driving similar development paths through technological innovation. In Europe, Revolut has quickly attracted a large number of users and rapidly expanded its market share by simplifying user experience and introducing a one-stop virtual asset trading function; South Korea's KakaoBank has built a complete digital financial service chain by integrating loan, payment, and virtual asset trading services. These cases illustrate that traditional financial institutions are increasingly recognizing that improving the virtual asset service chain will be a key strategy for retaining users in the future.
In this context, Hong Kong's practices are particularly demonstrative. Compared with other regions that treat virtual asset services as a single additional function, Hong Kong is forming a comprehensive industry connection centered around virtual asset exchanges, radiating to traditional financial institutions. Behind this transformation is Hong Kong's comprehensive exploration of the virtual asset compliance system: HashKey Exchange, as a licensed virtual asset exchange, provides safe, transparent, and standardized service paths by strictly adhering to the regulatory requirements of the Securities and Futures Commission (SFC); traditional financial institutions, through HashKey Pro, not only reduce the technical and compliance costs of entering the virtual asset market but also provide trust guarantees for entering this emerging field.
By connecting the industry centered around virtual asset exchanges, Hong Kong can not only consolidate its position as a global leader in the virtual asset market but also provide a viable path for traditional financial institutions to explore digital transformation. This industry collaboration will drive the virtual asset market from regional practices to global consensus, injecting new momentum for the long-term healthy development of the industry. In this context, HashKey Pro, as a core solution, is changing the rules of participation in the virtual asset market— in an increasingly changing financial world, those who can quickly open up virtual asset trading channels will grasp the initiative for the next wave of digital revolution.
