The Era of Digital Assets in Hong Kong Has Arrived: Financial Institutions Embrace New Opportunities

Recently, Hong Kong's capital market has welcomed an important moment in the era of digital assets. A well-known Chinese brokerage has obtained the first full license for virtual assets in Hong Kong, triggering a heated response from the market. The company's stock price surged by 466% over three trading days, demonstrating investors' strong optimism regarding the prospects of digital asset business.

Subsequently, news emerged that multiple brokerages completed the upgrade of License No. 1, further driving related stocks higher. Meanwhile, the Hong Kong SAR government released the "Hong Kong Digital Asset Development Policy Declaration 2.0," providing policy support for the development of the digital asset industry, marking a substantial stage in the integration of TradFi and digital assets.

Policies and markets jointly promote the development of Hong Kong's digital asset ecosystem

Hong Kong is actively building a digital asset ecosystem, with related policies and market development advancing side by side. In May of this year, the Legislative Council passed the "Stablecoin Ordinance Bill", becoming the world's first comprehensive regulatory framework for fiat-backed stablecoins. At the end of June, the policy declaration issued by the SAR government further clarified its determination to support Hong Kong in becoming a global center for digital asset innovation.

At the same time, the Hong Kong Securities and Futures Commission is speeding up the issuance of licenses related to virtual assets. Currently, 41 companies have successfully upgraded to License No. 1, authorized to conduct digital asset business. This series of actions has sparked a strong interest from investors, leading to a significant rise in related Hong Kong stock prices, reflecting the market's confidence in the development prospects of digital assets in Hong Kong.

How Traditional Brokerages Can Seize New Opportunities in Digital Assets

Against the backdrop of sluggish growth in traditional businesses, the digital asset business is becoming a key growth engine for brokerages seeking transformative breakthroughs. Compared to traditional capital markets, the digital asset sector demonstrates greater growth potential. The high activity levels brought by high-frequency trading users can significantly enhance platform traffic and customer acquisition efficiency. Combined with diverse income sources such as trading commissions, this creates a relatively independent new growth curve for brokerages, separate from traditional market fluctuations.

However, to stand out in the "TradFi + digital asset" sector, institutions must possess four key capabilities:

1. Compliance Awareness: Strictly adhere to regulatory requirements and promptly apply for relevant qualifications.
2. Technical Strength: Blockchain Technology Development and Security Protection Capabilities
3. Customer Base: Institutional clients and high net worth individual client resources
4. Risk Control System: A risk management framework that adapts to the characteristics of digital assets.

It is understood that several large brokerage firms' Hong Kong subsidiaries are actively following up on license applications, especially the leading brokerages with a broad customer base, which are seen by the market as potential targets for the next round of attention.

Cool Reflection After the Market Frenzy

Despite the high market sentiment, it is equally important to think calmly. As more institutions gradually obtain licenses, the scarcity halo of "a license is hard to come by" will gradually fade. The diminishing marginal effects of policy dividends, the disappearance of license scarcity, and the actual implementation of digital asset business will all become key factors in testing whether this capital feast can be sustained.

From "gaining qualifications" to "doing good operations", from "policy-driven" to "capability-driven", the entire industry is entering a deeper reshuffling period. Digital assets are not a "quick game" of the capital market, but rather a deep participation in the reconstruction of the global financial order. Only institutions that can leave a robust structure after the bubble can truly define the standards of the next generation of financial platforms.

In this new era full of opportunities and challenges, Financial Institutions need to carefully plan their strategies and continuously enhance their capabilities to seize the long-term development opportunities brought by digital assets.