TradFi Embraces Digital Assets: The Hong Kong Market Boom and Future Trends

Recently, the Hong Kong digital asset market has made a significant breakthrough. A well-known brokerage firm has obtained a full license for virtual assets, sparking heated discussions in the market. The company's stock price has surged by as much as 466% within just three trading days, demonstrating investors' positive expectations for the future of digital assets.

Subsequently, news of several brokerages completing the upgrade of License No. 1 emerged one after another, further boosting market enthusiasm. At the same time, the Hong Kong SAR government issued a new policy declaration on the development of digital assets, injecting strong momentum into the industry's growth. This series of events marks a substantial turning point in the integration of TradFi and digital assets in Hong Kong.

Hong Kong is actively building a digital asset ecosystem, with relevant policies and market developments advancing in tandem. In May of this year, the Legislative Council passed the world's first comprehensive regulatory framework for fiat stablecoins. The newly released policy declaration clearly states that it will support the creation of a global digital asset innovation center through policy.

Regulatory agencies are also accelerating the implementation of the licensing system. Currently, 41 companies have successfully upgraded to License No. 1 and have been approved for virtual asset licenses. The stock prices of related listed companies have generally surged, reflecting investors' confidence in the new era of digital assets in Hong Kong.

The concept of digital assets has opened up new growth opportunities for traditional brokers, but not all institutions can seize this opportunity. Early positioning and compliance awareness will become key factors. Taking the first fully licensed brokerage as an example, it began comprehensive布局 in the virtual asset field as early as last year, covering multiple business areas such as brokerage, issuance, and distribution.

Against the backdrop of sluggish growth in traditional business, digital asset business is becoming a key incremental engine for brokerages seeking transformation breakthroughs. The high activity brought by high-frequency trading users has significantly enhanced platform traffic and introduction efficiency. Coupled with diverse sources of income such as trading commissions, it has constructed a new growth curve for brokerages that is relatively independent of fluctuations in traditional capital markets.

However, to succeed in this emerging field, institutions need to possess multiple capabilities such as compliance awareness, technical strength, customer base, and risk control systems. It is reported that several major brokerage firms' subsidiaries in Hong Kong are actively pursuing license applications, especially the leading brokerages with extensive customer bases, which are seen by the market as potential targets for the next round of attention.

Despite the high enthusiasm in the market, it is equally important to think calmly. As more institutions are gradually approved, the scarcity of licenses will gradually decrease. From "gaining qualifications" to "operating well," and from "policy-driven" to "ability-driven," the entire industry is entering a deeper reshuffling period.

Digital assets are not a "get-rich-quick scheme" in capital markets, but a deep participation in the reconstruction of the global financial order. Institutions that can maintain a robust structure after the bubble will have the opportunity to define the standards for the next generation of financial platforms. In the future, the market will pay more attention to the actual operational capabilities and innovative levels of various institutions in the digital asset field.