In just four months, Huobi Trust has achieved a remarkable milestone—surpassing $1 billion in asset custody规模. As a subsidiary of Hong Kong-listed Huobi Technology, Huobi Trust is actively expanding its compliant virtual asset custodial services, positioning itself at the forefront of Asia’s evolving digital asset landscape.
Established under strict regulatory frameworks, Huobi Trust received official registration as a trust company in Hong Kong this past April. This license allows it to offer secure and compliant custody solutions for clients seeking asset protection and risk isolation. By the end of August, its managed assets had already exceeded $1 billion—a testament to growing institutional confidence in regulated crypto infrastructure.
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The Rise of Huobi’s Regulated Financial Arm
Huobi Technology made headlines in May when it released its 2021 interim report, revealing HK$900,000 in revenue from custody and compliance services. These services are operated through Huobi Trust US, which holds a trust company license granted by the Nevada Department of Business and Industry Financial Institutions Division.
Beyond its U.S. presence, Huobi has strengthened its position in Asia by securing a trust license in Hong Kong—one of the most stringent financial jurisdictions in the region. This dual-market approach underscores its strategy to build a globally compliant digital asset management ecosystem.
The foundation was laid earlier in 2021 when Huobi Asset Management (Hong Kong) Limited—a wholly owned subsidiary—was authorized to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities under Hong Kong’s Securities and Futures Ordinance. These licenses became effective on March 3, 2021, following regulatory guidance issued by the Securities and Futures Commission (SFC) in 2018 and 2019 regarding virtual asset fund managers and distributors.
This regulatory clarity allowed Huobi to launch what no other Hong Kong-listed company had done before: publicly traded cryptocurrency funds.
Launching Asia’s First Crypto-Only Funds
On April 22, Huobi Asset Management officially launched four funds targeted exclusively at professional investors:
- Bitcoin Tracking Fund
- Ethereum Tracking Fund
- Actively Managed Multi-Strategy Virtual Asset Fund
- Private Equity Fund focused on blockchain mining
These were later joined by a fifth product—a diversified fund allocating 10% to virtual assets and 90% to traditional investments—further broadening its appeal to conservative institutional portfolios.
With these launches, Huobi Technology became the first Hong Kong-listed company approved to issue cryptocurrency-based funds, marking a pivotal moment for digital asset adoption in Asia.
Drawing Parallels with Grayscale
When discussing institutional crypto adoption, one name stands out: Grayscale. Founded in 2013 under Digital Currency Group (DCG), Grayscale operates under U.S. SEC oversight and manages over $37 billion in digital assets across 13 single-asset trusts—including Bitcoin (BTC) and Ethereum (ETH).
Its client base includes hedge funds, family offices, pension funds, and wealth managers—proving that regulated crypto exposure can coexist with traditional finance.
In contrast, Asia has yet to see a comparable player. That void has led many industry observers to ask: Can Huobi Trust fill this gap and emerge as Asia’s answer to Grayscale?
According to Ye Ding, Partner at Hash Capital, “The convergence between traditional finance and digital asset markets is inevitable—it’s a gradual process, but momentum is building.”
He adds: “While digital assets still represent a small fraction of global equity markets, more firms are achieving compliance and integrating into mainstream finance. The long-term trajectory points toward widespread adoption.”
Indeed, institutional participation is rising worldwide. Major U.S. tech companies and public firms are increasingly allocating capital to Bitcoin and other digital assets. Yet in Asia, such moves remain rare—exceptions include Meitu, the Hong Kong-listed software company that invested heavily in BTC and ETH.
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Growth Drivers and Strategic Advantages
A key factor behind Huobi Trust’s rapid growth lies in its synergy with the broader Huobi ecosystem.
In June, Huobi Global announced the migration of collateral assets backing its H-series tokens—native assets issued on the Huobi Chain—to Huobi Trust for secure custody. Assets including BTC, LTC, BCH, BSV, XTZ, DOT, and FIL will now be held under professional custodianship, with regular proof-of-reserves published.
This integration provides Huobi Trust with immediate business volume while enhancing transparency for H-series token holders.
Liu Kai, Partner at Hangzhou Dongyuan Equity Investment, notes: “Huobi Trust benefits from strong exchange resources—liquidity support and brand recognition are significant advantages.”
However, structural challenges remain.
Regulatory Headwinds and Market Limitations
Despite progress in Hong Kong, mainland China’s regulatory environment presents obstacles. On September 24, ten Chinese authorities—including the PBOC, Ministry of Public Security, Supreme Court, and Supreme Procuratorate—issued a sweeping crackdown on cryptocurrency activities.
In response, Huobi Global swiftly announced its withdrawal from the Chinese market by year-end—a move that may indirectly affect Huobi Trust’s fundraising capabilities among mainland-connected investors.
“Hong Kong-based institutional capital can participate,” Liu Kai explains. “But mainland investors face foreign exchange quotas and regulatory barriers.”
Moreover, liquidity remains a concern. Unlike Grayscale products, which trade over-the-counter (OTC), Huobi Trust funds cannot currently be listed on exchanges like Huobi Global due to compliance restrictions. Their tradability hinges on potential approval from the Hong Kong Stock Exchange—an uncertain prospect.
Core Keywords Integration
Throughout this evolution, several core keywords naturally emerge:
- crypto custody
- regulated virtual assets
- institutional crypto investment
- Huobi Trust
- digital asset management
- Grayscale alternative
- Hong Kong crypto regulation
- professional investor funds
These terms reflect both user search intent and the strategic direction of Huobi Trust’s expansion into compliant financial services.
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Frequently Asked Questions (FAQ)
Q: What is Huobi Trust?
A: Huobi Trust is a licensed trust company based in Hong Kong and operated by Huobi Technology. It provides compliant custody and asset management services for virtual assets, primarily serving institutional and professional investors.
Q: How does Huobi Trust compare to Grayscale?
A: Both offer regulated exposure to digital assets through trust structures. However, Grayscale operates under U.S. SEC reporting requirements and has significantly larger AUM (~$37B). Huobi Trust is newer and focused on the Asian market, aiming to become a regional leader in compliant crypto finance.
Q: Are Huobi Trust funds available to retail investors?
A: No. All current fund offerings are restricted to professional investors as defined under Hong Kong SFC rules.
Q: Is Huobi Trust affected by China’s crypto ban?
A: While Huobi Global exited mainland China due to regulatory pressure, Huobi Trust operates under Hong Kong law. It remains active but faces limitations in accessing mainland capital due to foreign exchange controls.
Q: Can I trade Huobi Trust funds on an exchange?
A: Not currently. These funds are not listed on any public trading platform. Liquidity depends on private redemption mechanisms unless future listings are approved by regulators like the HKEX.
Q: What licenses does Huobi Trust hold?
A: It holds a trust company license in Hong Kong and operates through subsidiaries with Type 4 (advisory) and Type 9 (asset management) licenses under the SFC. Its U.S. arm is licensed in Nevada.
As Asia inches toward mainstream digital asset integration, Huobi Trust stands at a critical juncture—poised to become a cornerstone of institutional-grade crypto finance in the region. While challenges persist, its early traction suggests it may indeed evolve into the long-awaited Asian counterpart to Grayscale.