- Hong Kong’s largest online broker, Futu Securities International, has expanded its offerings to include crypto trading services.
- The brokerage is providing incentives, offering Nvidia and Alibaba shares as rewards for new crypto traders.
- Futu has also applied for a license for its new crypto platform, PantherTrade, further solidifying its commitment to the digital asset market.
Futu Securities International launches crypto trading services in Hong Kong, offering attractive incentives and aiming to bolster its position as a major player in the digital asset industry.
Futu’s Introduction of Crypto Trading Services
On August 1, Futu Securities International announced the addition of Bitcoin (BTC) and Ethereum (ETH) trading to its suite of financial services. This significant development allows the broker’s users to engage in cryptocurrency trading using either Hong Kong or US dollars, enhancing the accessibility of digital assets within the region. This move follows the recent upgrade of Futu’s securities license by the Securities and Futures Commission (SFC), which permits the company to offer virtual asset dealing services to both professional and retail clients.
The Incentive Program to Attract Investors
In an innovative effort to attract new investors, Futu has unveiled a unique incentive program. Customers who open accounts in August and maintain a deposit of HK$10,000 (US$1,280) for a period of 60 days are eligible to receive various rewards. The options include Bitcoin valued at HK$600, a HK$400 supermarket voucher, or a single Alibaba share. Furthermore, those who deposit US$80,000 or more for the same duration can opt for HK$1,000 in Bitcoin or a share of Nvidia, adding an extra layer of benefit to the brokerage’s crypto offerings.
Strategic Moves in a Growing Crypto Market
Futu’s foray into cryptocurrency trading is timely, aligning with a broader bullish trend in the crypto market. Bitcoin has seen a substantial increase, with its price climbing by 45% year-to-date. With the launch of their crypto trading services, Futu is positioning itself to capitalize on the growing interest in digital assets among Hong Kong investors. The broker’s newly obtained securities license places it in a favorable spot to offer these services legally and efficiently.
PantherTrade: The Future of Futu’s Crypto Aspirations
Beyond its current offerings, Futu is also pursuing a dedicated crypto exchange license for its new platform, PantherTrade. This move is a part of Hong Kong’s broader initiative to establish itself as a global hub for virtual assets. By adhering to the city’s mandatory licensing regime, which was designed to attract crypto businesses and investors, Futu demonstrates its commitment to regulatory compliance and market leadership. Presently, PantherTrade is “deemed to be licensed,” allowing it to operate within the regulatory framework while awaiting full approval from the SFC.
Challenges and Opportunities in a Changing Landscape
Despite making significant strides, Futu and Hong Kong at large face various challenges in their quest to become leading figures in the global crypto ecosystem. The exit of several large global platforms and relatively low trading volumes for Bitcoin and Ethereum ETFs on the local stock exchange highlight the volatile nature of the market. However, Futu’s proactive approach and strategic incentives could potentially drive higher engagement and establish a robust foundation for crypto trading in the city.
Conclusion
Futu Securities International’s entry into the cryptocurrency market marks a significant milestone for the firm and the broader financial landscape in Hong Kong. By integrating crypto trading services and offering attractive incentives, Futu is not only diversifying its portfolio but also setting the stage for increased local participation in the digital asset industry. As the company awaits full licensing for PantherTrade, it continues to navigate a challenging yet promising market, aiming to solidify its position as a key player in the global crypto economy.
