Author: Web3Husky
As the price of Bitcoin is about to break through the $100,000 mark, the Hong Kong crypto market has also reached several historic milestones. Last year, when people thought about the relationship between Hong Kong banks and cryptocurrencies, they often thought of problems such as "difficulty in opening accounts" and "lack of channels".
But just one year later, banks not only support deposits and withdrawals with compliant exchanges, but also cooperate with compliant exchanges to "personally take action" to open up virtual asset trading channels. This is a big step forward, and it also gives us a glimpse into the booming 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 in becoming 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—linking virtual banks, brokerages, and other institutions to continuously inject liquidity and trust into Hong Kong's virtual asset market. This model will provide a new paradigm for the reshaping of industry rules and ecological development, helping Hong Kong secure an important position in the global virtual asset market competition landscape.
From 'indirect channels' to 'direct channels', a 'giant leap' from traditional finance to virtual currency.
It is no longer news that traditional financial institutions are racing to enter the market.
As early as 2021, over 55% of the world's top 100 banks had ventured into virtual asset businesses, 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' virtual asset trading volume in the first quarter of 2024 increased by 42% year-on-year, further attracting the attention of institutional investors.
Hong Kong is also closely following international cryptocurrency trends, continuously optimizing regulatory policies. The implementation of the Virtual Asset Service Provider (VASP) regulations and the upgrade of Financial License No. 9 mark Hong Kong's unique balance between compliance and innovation, 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 their virtual asset businesses. Traditional brokerages represented by Tiger Brokers and Victory Securities are taking the lead in providing virtual asset investment services for professional investors; Hang Seng Bank and HSBC are exploring virtual asset custody functions.
However, it must be mentioned that traditional financial institutions usually rely on indirect methods such as ETFs to provide services when exploring this emerging field. In the early stages, this model can open the virtual asset market to institutional clients, but as the market develops, its limitations become increasingly prominent. High management fees, transaction lags, and insufficient control over user assets are shortcomings that make this approach difficult to meet the increasingly complex market demands. Furthermore, other traditional virtual asset services such as custody and matching transactions, while emphasizing security and compliance, struggle to meet institutional clients' higher demands 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 can complete user asset custody, trading, and clearing through the licensed exchange HashKey Exchange with just one click, without needing to redevelop complex systems.
The feasibility of this solution has been fully validated in the collaboration between HashKey Exchange and ZA Bank. As Asia's first virtual bank to provide retail virtual asset trading services, ZA Bank successfully launched Bitcoin and Ethereum trading features within its app, seamlessly converting with fiat currencies relying on HashKey Pro. This collaboration not only expands ZA Bank's digital financial service boundaries but also gives it a head start 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 with the virtual asset market through HashKey Pro, providing efficient trading solutions for high-net-worth clients and institutional users.
Linking 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 lies not only in being a direct channel but also in helping link traditional financial institutions with the virtual asset market. By standardizing technology and modularizing services, it helps virtual banks, brokerages, and payment institutions quickly integrate virtual asset trading services, allowing these institutions to participate in this emerging market at lower technical and compliance costs. This involves not only the 4 million stock investors in Hong Kong but also tens of millions of people trading in banks.
Currently, HashKey Pro has established cooperation with more than ten traditional financial institutions, including ZA Bank, Victory Securities, and Ade Securities. The 'hive effect' of HashKey Pro is reflected not only in the scale of cooperating institutions but also in its far-reaching impact on the market. With the addition of each new institution, market liquidity continues to grow, and through the demonstration effect, it will attract more traditional financial institutions to overcome technological and compliance barriers, accelerating their entry into the virtual asset field. This positive cycle will effectively break down the barriers between traditional financial institutions and the virtual asset industry, promoting their deep integration and accelerating the financial development and status enhancement of Hong Kong.
The impact of this synergistic effect has transcended the Hong Kong local market, with Hong Kong 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 ecosystem.
In fact, this trend is not unique to Hong Kong. Globally, traditional financial institutions, represented by banks, are promoting similar development paths through technological innovation. Europe's Revolut has attracted a large number of users and quickly expanded its market share by simplifying user experience and introducing one-stop virtual asset trading functions; South Korea's KakaoBank has built a complete digital financial service chain by integrating loan, payment, and virtual asset trading services. These cases indicate 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 exemplary. Compared to other regions that view virtual asset services as a single additional function, Hong Kong is forming a comprehensive industry connection centered on virtual asset exchanges, radiating to traditional financial institutions. Behind this transformation is Hong Kong's comprehensive exploration of the compliance system for virtual assets: HashKey Exchange, as a licensed virtual asset exchange, provides a safe, transparent, and standardized service path for partner institutions 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 with virtual asset exchanges at its core, Hong Kong can not only consolidate its position as a leader in the global 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 into the long-term healthy development of the industry. In this context, HashKey Pro, as a core solution, is changing the participation rules in the virtual asset market—whoever can quickly open up virtual asset trading channels in an increasingly changing financial world will seize the initiative in the next wave of digital revolution.
