VSFG previously planned to apply for a virtual asset trading platform (VATP) license, but now due to capital utilization factors, it has changed its strategy and turned to focus on virtual asset ETFs and stablecoins. Zhu Chengyu, chairman of VSFG, admitted: "After doing the math, I feel that this is not very reasonable." He also pointed out that the investment scale of stablecoins and virtual asset trading platforms is comparable, but the returns and business model of stablecoins are clearer, so they chose stablecoins between the two.
Zhu Chengyu said that there are many areas to get involved in the field of virtual assets. "In terms of resource allocation, after everyone sat down to discuss, the easiest first step for us is of course ETF, because it already has a business model." In 2020, Yibo Finance launched a spot Bitcoin tracking product approved by the China Securities Regulatory Commission and limited to professional investors, and has experience in operating related products. Last month, Yibo Finance announced a partnership with Value Partners Hong Kong Fund Management to issue a Bitcoin spot ETF, hoping to submit an application before the Lunar New Year and plan to launch it in the first quarter.
He continued: “Second, if I have to make a bet, license No. 7 or stablecoin, we will choose stablecoin.” He admitted that there are fewer competitors for stablecoins, and the trading platform is not the group’s core technology (know-how). If you really want to get a piece of the pie, you can invest in all VATPs and don’t have to do it yourself.
There are currently two licensed virtual asset trading platforms in Hong Kong. Under current regulations, only Bitcoin and Ethereum are allowed to be bought and sold by retail investors. Both platforms have recently raised funds. OSL's parent company raised more than HK$11 million through a private placement of shares in November last year, which was allocated to the cryptocurrency group BGX; the latter became the company's largest shareholder; according to the 7 annual report, OSL's parent company has been losing money for five consecutive years. As for HashKey Group, the parent company of another licensed trading platform, it announced last month that it had received nearly US$2022 million (approximately HK$5 million) in Series A financing, with a valuation of more than US$1 billion (approximately HK$7.8 billion).
In addition, E-Bet Finance has also been involved in the digital Hong Kong dollar (eHKD), participating in the HKMA's digital Hong Kong dollar pilot program, and cooperating with Hong Kong Telecom (06823) and ZhongAn Bank to complete the pilot test of "tokenized property-secured loans", but the HKMA has not yet decided whether to launch eHKD. Li Kaixiang, the company's senior consultant and head of stablecoins, said that eHKD is the central bank digital currency (CBDC) developed by the HKMA, and stablecoins are operated in a commercial model. It is expected that stablecoins will develop faster and can also design more details for individual merchants.
Source: Today's Economic Times