Hong Kong Crypto Broker Victory to Launch Virtual Asset Structured Products by End of 2024

Hong Kong-based crypto broker Victory Securities has announced plans to introduce structured virtual asset products aimed at professional investors by the end of the year. With regulatory approval from Hong Kong’s Securities and Futures Commission (SFC), Victory Securities is now the first licensed broker in the city to offer cash-settled virtual asset structured products, signaling a major milestone for Hong Kong’s expanding virtual asset ecosystem.

Expanding Investment Opportunities with Structured Crypto Products

Structured crypto products are financial instruments designed to generate customized returns based on the performance of individual or mixed cryptocurrencies. These products are tailored for investors seeking diversified risk and higher potential returns. Victory Securities aims to cater to a range of investment goals, including yield generation on stablecoins and arbitrage strategies.

Globally, structured products in the cryptocurrency space are gaining traction. Grayscale Investments in the U.S. provides crypto exposure through various trusts, and platforms like OKX are developing products that match different risk profiles. Victory Securities’ move aligns with this trend, giving professional investors in Hong Kong access to more sophisticated crypto investment tools.

Kennix Chan, executive director at Victory Securities, highlighted the importance of the regulatory approval: “The regulatory green light for Victory Securities to market virtual asset structured products signifies an important step forward for Hong Kong to build a comprehensive virtual asset ecosystem,” he stated. With this license, Victory Securities positions itself as a key player in Hong Kong’s efforts to create a regulated and robust crypto market.

Hong Kong’s Accelerated Push for Virtual Asset Platform Licenses

Hong Kong’s regulatory environment for digital assets has evolved significantly, with the SFC working to expedite licensing for Virtual Asset Trading Platforms (VATPs). As part of this push, the SFC has issued provisional approvals to some platforms and aims to issue the first official licenses by the end of 2024. This accelerated process reflects Hong Kong’s ambition to become a leading digital asset hub in Asia, offering a regulated and stable environment for virtual asset trading.

The regulatory support extends beyond licensing. Hong Kong Exchanges and Clearing Limited (HKEX), the city’s stock exchange operator, plans to launch benchmark indices for Bitcoin and Ethereum on November 15. These indices will provide a reference point for Bitcoin and Ethereum’s performance, giving investors in Hong Kong additional data to guide their virtual asset investments.

Building a Comprehensive Digital Asset Hub in Asia

Victory Securities’ structured products and the broader licensing initiatives in Hong Kong underscore the city’s commitment to establishing itself as a premier destination for digital asset innovation. With global demand for advanced crypto investment tools rising, Hong Kong is positioning itself as a bridge between traditional finance and the digital asset industry.

These developments come at a crucial time, as other financial hubs in Asia are also competing to attract crypto businesses. By fostering a regulated and supportive environment for structured crypto products and virtual asset platforms, Hong Kong hopes to attract both local and international investors, setting the stage for long-term growth in its digital asset sector.

For Victory Securities and the broader financial community in Hong Kong, the launch of these structured products represents a significant step in building a comprehensive and regulated virtual asset ecosystem. As the city accelerates its efforts to support crypto infrastructure, professional investors in Hong Kong can expect a growing array of opportunities in the digital asset space.