The global financial landscape is undergoing a seismic shift as traditional financial institutions increasingly embrace digital assets. At the forefront of this transformation in Asia is Guotai Junan International Holdings Limited (01788.HK), which recently announced it has received formal approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities trading license. This enhancement now permits the firm to offer virtual asset trading services and provide investment advice related to digital currencies such as Bitcoin, Ethereum, and stablecoins like Tether (USDT).
This regulatory milestone positions Guotai Junan International as the first Chinese-funded securities firm in Hong Kong authorized to deliver comprehensive virtual asset solutions. These include direct crypto trading, advisory services during transactions, and the issuance and distribution of virtual asset-related financial products — including over-the-counter (OTC) derivatives.
A Strategic Leap into Digital Finance
The move underscores a broader trend: the convergence of traditional finance and blockchain-based assets. In 2024, Guotai Junan International launched structured products linked to physical-delivery virtual asset ETFs — a pioneering step in the Hong Kong market. The same year, it secured SFC approval to act as an introducing agent for licensed virtual asset trading platforms.
Looking ahead, by the first half of 2025, the company gained regulatory clearance to distribute tokenized securities or provide professional advice on them. It also initiated a digital bond issuance platform, signaling its ambition to lead in both public and private digital capital markets.
👉 Discover how financial institutions are unlocking new opportunities in digital assets.
This strategic expansion hasn’t gone unnoticed by investors. On the back of these developments, Guotai Junan International’s stock price soared more than 190% on the Hong Kong Stock Exchange. The momentum spilled over into mainland China’s A-share market, with sector peers like Haitong Securities and Dongfang财富 rising over 9% and 10% respectively, while Guosheng Jin Kong and Xiangcai Shares hit consecutive daily trading limits.
Hong Kong’s Vision: Becoming a Global Crypto Hub
Guotai Junan’s breakthrough reflects Hong Kong’s aggressive push to become a global virtual asset hub. The city-state has rolled out a series of progressive regulations aimed at legitimizing and supervising the digital economy.
On June 6, 2025, the Hong Kong government published the Stablecoin Ordinance (Commencement Date) Notice in the Gazette, setting August 1, 2025, as the official implementation date for the Stablecoin Ordinance (Cap. 656). Under the new rules, any entity issuing fiat-backed stablecoins in Hong Kong — or issuing digital tokens pegged to the Hong Kong dollar outside the region — must obtain a license from the Monetary Authority.
Experts highlight that Hong Kong’s dual role as a clearing center for both Hong Kong dollars and offshore RMB makes it uniquely positioned to pioneer regulated stablecoin frameworks. Such infrastructure could serve as an alternative settlement mechanism for cross-border trade, particularly within multilateral economic corridors like the Belt and Road Initiative.
Why Stablecoins Are Taking Center Stage
Stablecoins have rapidly evolved from niche crypto tools into mainstream financial instruments. Their ability to combine the efficiency of blockchain with price stability tied to real-world currencies makes them ideal for payments, remittances, and institutional settlements.
Recent global developments underscore their rising importance:
- On June 5, Circle, the issuer of USD Coin (USDC), made its debut on the New York Stock Exchange at $31 per share. Within minutes, trading halted due to volatility — twice. By June 23, its share price had surged past **$275, representing nearly an 8x gain** in under three weeks.
- The U.S. Senate passed the GENIUS Act on June 17, advancing federal legislation for dollar-backed stablecoins and paving the way for clearer oversight.
- Major corporations including Walmart, Amazon, and travel giant Expedia are actively exploring plans to launch proprietary stablecoins in the U.S.
- Airlines and other large enterprises are evaluating stablecoins for loyalty programs, supply chain financing, and real-time international payouts.
These moves indicate that stablecoins are no longer just crypto-native innovations — they’re becoming integral components of next-generation financial systems.
Traditional Finance Meets Blockchain: A New Era Begins
According to research from CITIC Securities, traditional financial institutions are now engaging with the virtual asset ecosystem with unprecedented breadth and depth. Rather than viewing crypto as a fringe market, banks and brokers are integrating digital assets into core business lines.
In brokerage services, firms are focusing on seamless integration between conventional securities accounts and crypto holdings. Strategies include:
- Forming strategic partnerships with licensed crypto exchanges
- Building proprietary trading gateways
- Offering one-click buy/sell and deposit/withdrawal functionality for major cryptocurrencies
These integrations aim to reduce friction for retail and institutional clients alike, lowering entry barriers while maintaining compliance with anti-money laundering (AML) and know-your-customer (KYC) standards.
👉 See how integrated platforms are reshaping investor access to digital assets.
Moreover, the rise of tokenized real-world assets (RWA), such as digitized bonds, equities, and commodities, is accelerating institutional adoption. With companies like Guotai Junan launching digital bond platforms, we’re witnessing the early stages of a fully interoperable financial system — where physical and digital assets coexist on shared infrastructure.
Frequently Asked Questions (FAQ)
Q: What does Guotai Junan International’s new license allow?
A: The upgraded license permits the firm to offer virtual asset trading services (e.g., Bitcoin, Ethereum, USDT), provide investment advice during transactions, and issue/distribute virtual asset-related products like OTC derivatives and tokenized securities.
Q: Why did Guotai Junan’s stock surge over 190%?
A: The surge followed news of its SFC-approved expansion into crypto services, reflecting strong investor confidence in its early-mover advantage among Chinese-funded brokers in Hong Kong’s regulated digital asset market.
Q: What is the significance of Hong Kong’s Stablecoin Ordinance?
A: It establishes a formal licensing regime for stablecoin issuers, enhancing regulatory clarity and investor protection. It also supports Hong Kong’s goal of becoming a global leader in digital finance and cross-border blockchain-based settlements.
Q: How are global corporations using stablecoins?
A: Companies like Amazon and Walmart are exploring stablecoins for payments, supply chain efficiency, loyalty programs, and international payroll systems — leveraging their speed, low cost, and programmability.
Q: Are tokenized securities the future of finance?
A: Yes. Tokenization increases liquidity, reduces settlement times, and enables fractional ownership. As seen with Guotai Junan’s digital bond initiative, traditional finance is already adopting this technology at scale.
Q: Can other Chinese brokerages follow this path?
A: While regulatory environments differ, Guotai Junan’s success sets a precedent. Other mainland-affiliated firms in Hong Kong may pursue similar upgrades, especially as demand for diversified digital investment options grows.
The Road Ahead
As boundaries between traditional finance and decentralized technologies blur, institutions that adapt quickly stand to gain significant market share. Guotai Junan International’s bold move exemplifies how legacy players can reinvent themselves — not by replacing old models, but by expanding into new frontiers.
With Hong Kong solidifying its regulatory framework and global giants embracing stablecoins, the stage is set for a new era of finance: one that's faster, more inclusive, and digitally native.
👉 Explore the future of finance — where innovation meets regulation.
The integration of virtual assets into mainstream investing is no longer speculative — it's happening now. And for forward-thinking firms and investors alike, the opportunity window is wide open.