Hong Kong Broker to Launch First SFC-Licensed Cash-Settled Virtual Asset Products

• Victory Securities secures SFC’s nod, set to offer first structured crypto products to qualified Hong Kong investors by year-end.
• Victory’s new services will allow stablecoin holders to earn yield through an omnibus account, expanding investment options.
• Hong Kong accelerates virtual asset growth with Victory’s product approval and HKEX’s Bitcoin, Ethereum indices launching November 15.

Victory Securities, Hong Kong’s leading virtual asset broker, has secured approval from the Securities and Futures Commission (SFC) to offer cash-settled virtual asset structured products. This an historic move for Hong Kong, as Victory Securities becomes the first licensed broker to market these products, aimed exclusively at qualified professional investors. By year-end, Victory Securities plans to launch its innovative offerings that could reshape virtual asset investment options in Hong Kong’s emerging regulated market.

Expanding Investment Opportunities for Qualified Investors

Victory Securities aims to capitalize on this regulatory approval by introducing two unique investment products. First, the broker will offer structured products referencing digital assets’ performance, allowing clients to pursue diversified returns while managing volatility. These structured products enable investors to achieve higher potential returns under certain market conditions, while also accommodating specific investment goals, including arbitrage.

The second product line targets investors who hold stablecoins, providing them with a chance to earn additional yield through a special service facilitated by Victory’s omnibus account. This service aims to provide clients with more stable returns by leveraging stablecoin holdings, expanding the range of options for investors within a compliant framework. Victory Securities plans to launch both products before the year concludes.

Pioneering Stablecoin Services and Digital Asset Transactions

Victory Securities is the only broker in Hong Kong authorized to facilitate direct deposits and withdrawals of cryptocurrencies and stablecoins. This distinct capability highlights the broker’s strategic role in integrating traditional finance with the expanding digital asset space. Clients using Victory’s services can already access money market funds via the VictoryX mobile app, offering a bridge between conventional financial products and digital assets.

This proactive approach places Victory Securities at the forefront of regulated digital asset transactions, reflecting Hong Kong’s efforts to foster a robust virtual asset ecosystem. As part of this commitment, Victory aims to continuously develop compliant solutions that connect clients to innovative investment products.

Hong Kong’s Growing Digital Asset Ecosystem

Hong Kong has recently accelerated steps to support its digital asset sector. The SFC is expediting the licensing process for Virtual Asset Trading Platforms (VATPs) and anticipates granting official licenses to approved applicants by the end of the year. Additionally, the Hong Kong Exchanges and Clearing Limited (HKEX) plans to introduce benchmark indices for Bitcoin and Ethereum on November 15, further anchoring Hong Kong’s reputation as a digital asset hub in Asia.