Securities Industry Giant Enters the Crypto Assets Field: The Innovative Path of a Long-established Brokerage Firm

On June 13, 2025, the founder of a fintech media outlet conducted an exclusive interview with the head of a well-known securities company's virtual asset business. As the third-generation heir of a family business, this leader has continued the company's 54-year financial legacy, pioneering new horizons in the Crypto Assets field with an innovative spirit and a commitment to compliance. He expressed a sense of mission to bring liquidity back to Hong Kong through innovative products. From personal lessons learned to unique insights on asset tokenization and stablecoins, this leader showcased the tremendous potential for the fusion of traditional finance and Crypto Assets. His candid and pragmatic responses painted the picture of a grounded yet visionary industry pioneer. This conversation not only revealed the company's transformation story but also added to the anticipation for Hong Kong's future as a global virtual asset center.

Since its establishment in 1971, this long-established brokerage has weathered 54 years of ups and downs and has become a benchmark in the Hong Kong financial market. Today, it is reshaping itself as a Crypto Assets brokerage, with trading volume exceeding 10 billion HKD, becoming a leader among licensed brokerages in Hong Kong. The following dialogue reveals how the company seeks a balance between tradition and innovation, as well as the future development prospects of the virtual asset market in Hong Kong.

Question: Your company's recent Crypto Assets trading volume has surpassed 10 billion HKD, becoming the number one licensed broker in Hong Kong. What unique advantages do you think the company has to stand out? What areas are you still striving to improve?

Answer: We are able to achieve the highest trading volume mainly due to three major advantages. First is our leading license. On November 24, 2023, we became the first broker approved by the Hong Kong Securities and Futures Commission to conduct retail crypto trading, seizing the first-mover advantage and leading our peers by 6 to 8 months. Secondly, our 54 years of financial experience in Hong Kong allows us to deeply understand regulations and market rules, enabling us to quickly launch innovative products such as physical Bitcoin delivery, stablecoin subscription Bitcoin funds, as well as asset tokenization projects and virtual asset structured products. Thirdly, we position ourselves as a crypto assets broker, investing heavily in acquiring technical teams to independently develop products, freeing ourselves from outsourcing constraints and accelerating our iteration speed. Among over 600 brokers in Hong Kong, more than half rely on outsourced systems, limiting innovation, while our in-house technical capabilities are our core competitive advantage.

As for the room for improvement, there are still relatively few categories of virtual asset products in Hong Kong, with spot trading currently being the main focus. We are working hard to launch new businesses such as structured products, lending, and over-the-counter trading to enrich the ecosystem, allowing funds to stay in Hong Kong instead of merely engaging in deposit and withdrawal services.

Q: Based on the information you have obtained, what are the characteristics of users trading Crypto Assets compared to those trading traditional securities? How much do the two overlap?

Answer: Our users are primarily Asian high-net-worth clients aged 30 to 45, with traditional finance and crypto assets native clients each accounting for half. Traditional clients are mostly executives of listed companies or family offices, preferring compliance and security; crypto assets native clients include miners and crypto enthusiasts, who are more sensitive to market fluctuations. The total number of active virtual asset clients reaches five digits, primarily concentrated in Hong Kong and Southeast Asia. The overlap between the two types of clients is about 50%, with traditional clients gradually accepting crypto assets, and crypto assets native clients also starting to pay attention to our wealth management services. We are more like a private bank, offering customized products to meet the needs of both.

Q: Your company has a very fast acceptance rate for Crypto Assets. How do you manage to respond quickly and keep up with the market pace in such an emerging field?

Answer: The core of rapid response is genes and resources. Our 54 years of financial experience in Hong Kong has made us familiar with regulations, allowing us to quickly bring innovative products into compliance, such as communicating with the Securities and Futures Commission to launch physical Bitcoin delivery or asset tokenization projects. The collapse of a trading platform in 2022 had a significant impact on me; I incurred personal losses there and realized the importance of compliant platforms, which drove us to accelerate our布局. We began planning our virtual asset business in 2019, officially launched in 2021, and quickly connected with exchanges after obtaining a license in 2023. In addition, acquiring a technology team has allowed us to develop products independently, such as the coin-in and coin-out function, leading the market.

Q: Can mainland clients use your company's coin deposit and withdrawal products?

Answer: Our coin deposit and withdrawal product services strictly adhere to the regulations of the Hong Kong Securities and Futures Commission, and are currently primarily aimed at clients in Hong Kong and other qualified overseas markets. According to current policies, residents of mainland China do not fall within the target service group.

During the customer identity verification process, we will require compliance documents including proof of address and conduct strict reviews based on regulatory requirements. If a customer holds proof of overseas residence and meets all compliance conditions, we will further assess on a case-by-case basis, but it must be emphasized that all operations are premised on compliance with local regulations.

We always prioritize compliance and maintain ongoing communication with regulatory authorities to ensure that our business adheres to the latest guidelines.

Q: You mentioned that the collapse of a certain trading platform had a significant impact on you personally. How has this affected your company's determination in the compliance field?

Answer: The crash had a profound impact on me. In September 2022, I had just returned from Token2049 in Singapore, where I attended related VIP events, and then it happened. This personal loss made me realize that in the world of Crypto Assets, compliance is not an obstacle but a protection. When no one can help you, the accountability of compliant platforms becomes particularly important. This has driven us to accelerate our layout of virtual asset business, planning since 2019, launching in 2021, and obtaining a license in 2023. We hope to provide customers with a safe and compliant trading environment to solve the credit issues of trading counterparts, just like we do in traditional finance.

Q: 10 billion HKD is an important milestone, but there is still a significant gap compared to offshore traditional encryption exchanges or on-chain DeFi. Do you think future compliant brokers or exchanges can compete with some large trading platforms? Is strict compliance a constraint or a destination?

Answer: Compared to some non-compliant exchanges, compliant brokerages currently have fewer product categories, making competition challenging. However, in the long run, global regulations are tightening, and non-compliant exchanges will either obtain licenses or develop discreetly, which will shrink their space. Institutional investors prefer the security and accountability of compliant platforms. For example, we ensure the principal safety of structured products through a trust structure, so even if the issuer runs away, it does not affect the clients. Our affiliated company is currently applying for an exchange license, and as Hong Kong's regulations loosen for derivatives, lending, etc., our competitiveness will increase. Compliance is not a constraint but rather the key to opening up institutional capital entry.

Q: As the first trading platform in Hong Kong to integrate stocks and Crypto Assets, your company has invested over ten million Hong Kong dollars in R&D. Could you introduce the key focuses of the R&D? What unique designs are there for the user experience for investors?

Answer: Our R&D focus is on independent technical capabilities and compliance innovation. We have invested heavily in acquiring technical teams to solve the problems of slow response and difficult upgrades of outsourced systems. Key achievements include the coin-in and coin-out functionality, a first in Hong Kong, which supports compliant spot trading for BTC, ETH, LINK, AVAX, etc. Professional investors can also trade USDT, USDC, SOL, TON and other Crypto Assets. Currently, we support the ERC20 chain and some TRC20, with plans to support more chains as the exchange grows. For investors, we integrate stocks and Crypto Assets to provide a one-stop experience, with high security (such as trust structures to protect principal), smoother deposit and withdrawal processes, making us more favored by high-net-worth clients compared to some non-compliant platforms.

Q: What efforts has your company made in investor education, and how do you help clients understand the volatility of the crypto assets market?

Answer: The Crypto Assets market is highly volatile, and we place great importance on investor education. Over the past year, we have held at least one offline event every month, come rain or shine, including investment seminars and communication meetings, as well as online activities. Whenever we launch a new product or there is a significant market development, we organize internal training to synchronize information with clients. In addition, we publish market reports every month to help clients understand market trends. We also collaborate with the industry, such as providing CPT training courses on Crypto Assets for the Securities Association, and even developing internal certification programs to encourage teams and clients to engage in in-depth learning. These efforts aim to enable clients to invest rationally and cope with the complexities of the Crypto Assets market.

Q: Will your company consider integrating tokenized assets in its products in the future, even expanding into DeFi?

Answer: Definitely. Asset tokenization is the DNA of Hong Kong's capital market. We have collaborated with a large technology company on a green energy exchange project, serving as the fund manager, and connecting the revenue from mainland energy assets to overseas markets through a fund structure. The on-chain part is completed by the affiliated exchange and partners. We are optimistic about three types of asset tokenization: strong cash flow assets (such as fixed income products), high-growth assets (such as IP-related, movie box office tokenization), and highly liquid assets (such as gold, carbon credits). Currently, there are three related projects in progress, one of which plans to develop a secondary market or compensate for exchange listing restrictions through over-the-counter transactions. DeFi will also be considered, but it needs to be explored within a compliance framework.

Question: Your company plans to launch structured products soon. Could you disclose their design? Are they aimed at institutions or retail investors? How do you balance high returns with risks?

Answer: We will launch structured products this month, such as dual-currency wealth management, where clients can earn interest by depositing Bitcoin, similar to selling options, with a short cycle (starting from 14 days) and a low investment threshold (100,000 USD). The products are aimed at professional investor clients. The trust structure ensures the safety of the principal, so even if the issuer runs away, it will not affect the clients. The design focuses on high liquidity and compliance with fund safety; the return rate depends on market fluctuations, but risks are controlled through structured designs (such as interval locking), making it more flexible and cost-effective compared to traditional funds.

Question: You previously suggested allocating 5% or more of funds to virtual assets. In the current turbulent macro environment, do you still hold this view? How should ordinary investors start investing in Crypto Assets and choose their targets?

Answer: I still advocate for a 5% or more allocation. Diversifying asset allocation is key; clients who invested in Crypto Assets over the past year have all made profits, even though the macro environment is turbulent now (like the Iran conflict), the long-term potential remains huge. Ordinary investors should do their homework first, trade personally to understand the market, and prioritize Bitcoin, which I believe is the anchor of virtual assets and has a more stable trend. Choose compliant platforms to ensure asset security and liquidity.

Question: You mentioned wanting to bring liquidity back to Hong Kong through innovative products. What specific measures does your company have in this regard?

Answer: Bringing liquidity back to Hong Kong is one of my biggest responsibilities. Currently, Hong Kong's virtual assets market mainly focuses on deposit and withdrawal services, and funds are flowing out quickly. To become a global virtual asset center, we must have more products to retain funds. We have launched several innovative products, such as coin-in and coin-out functionality, physical Bitcoin delivery, asset tokenization projects, and structured products that accept Bitcoin. In the future, we plan to launch 4-6 products, including derivatives, lending, over-the-counter trading, and discretionary account management services. At the same time, our affiliated company is applying for an exchange license, aiming to create a complete ecosystem through innovative and compliant products, allowing funds to flow in Hong Kong.

Q: What is your opinion on the recent popular stablecoins? Has Hong Kong "woken up too early and missed the boat" in the stablecoin field?

Answer: Stablecoins have a broad prospect in Hong Kong and are believed to be used for stock settlement, daily payments, etc., in the near future, replacing intermediaries, improving efficiency, and reducing costs. The HKD stablecoin will definitely be issued, but the offshore RMB stablecoin has more potential to assist in the internationalization of the RMB. Currently, Hong Kong leaves room for the regulation of stablecoins and supports the development of various fiat stablecoins, unlike the U.S. which explicitly requires USD stablecoins to purchase U.S. treasury bonds. Hong Kong needs to seize opportunities in the development of stablecoins, enrich application scenarios, and make further progress towards becoming a global virtual asset center.

**Q: Besides Crypto Assets, your company has not