The race for virtual asset trading licenses is heating up across financial markets, sparking renewed investor interest and reshaping expectations for brokerage performance. What began as a trend in Hong Kong’s equity market has now spilled over into mainland China’s A-share sector, shifting focus from Guotai Junan International to Tianfeng Securities. According to Wind data, Tianfeng Securities surged nearly 10% intraday on June 27, closing up 7.89%, reflecting growing market confidence in brokerages expanding into digital assets.
This momentum was triggered by Guotai Junan International, a subsidiary of Guotai Haitong Securities, which recently announced it has received formal approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing Type 1 license—covering securities dealing—to include virtual asset trading services and advisory on such transactions. This makes it the first mainland-backed brokerage in Hong Kong authorized to offer comprehensive digital asset solutions, including trading, custody, advisory, issuance, and derivatives.
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A New Engine for Brokerage Revenue Growth
The license expansion allows investors to trade major cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether (USDT), directly through Guotai Junan International’s platform. The firm now supports full-cycle services: executing trades, providing investment advice during transactions, and issuing or distributing virtual asset-related products, including over-the-counter derivatives.
“This isn’t just an incremental upgrade—it’s a strategic leap,” said a non-bank financials chief analyst at an East China-based brokerage. “It builds upon their existing Type 1 license but adds a whole new asset class: virtual assets.”
Regulatory clarity has played a pivotal role. The SFC emphasizes that investors should only use licensed platforms for virtual asset trading. In February 2025, the commission launched its “A-S-P-I-Re” regulatory roadmap—a structured framework designed to streamline market access and reduce compliance burdens while ensuring investor protection.
Sun Ting, Non-Bank Financials Lead Analyst at Dongwu Securities, highlighted the transformative potential: “Guotai Junan International has effectively evolved from a traditional securities firm into a digital asset services hub, integrating trading, custody, advisory, and product innovation under one roof.”
This shift unlocks multiple high-margin revenue streams:
- Trading commissions on crypto and stablecoin transactions
- Revenue sharing from cross-border stablecoin settlements
- Fees from structured derivative design and issuance
Moreover, with Hong Kong positioning itself as a global virtual asset hub—and the Legislative Council advancing the Stablecoin Bill in 2025—the timing couldn’t be better. Anchored to the Hong Kong dollar, local stablecoins are gaining traction, creating fertile ground for early movers.
Luozuan Hui, Lead Analyst at Shenwan Hongyuan Research, noted that this move introduces a novel asset class to Guotai Haitong’s international brokerage arm—beyond equities and derivatives. “With regulatory tailwinds and rising demand, we expect substantial growth in overseas operations driven by virtual asset adoption.”
Industry-Wide Momentum Builds in Hong Kong
As of June 27, 2025, the SFC listed 41 institutions that have upgraded their Type 1 licenses to support virtual asset trading via integrated account structures. Among them are Guotai Junan International and Tianfeng International Securities & Futures, the offshore arm of Tianfeng Securities.
Guotai Junan International has been proactive in digital finance innovation:
- In 2024, it launched structured products based on virtual asset spot ETFs, becoming one of the first in Hong Kong to do so.
- In early 2025, it gained SFC approval to distribute tokenized securities and provide related advice.
- It initiated digital bond issuance and secured virtual asset trading资格 on June 24—completing its end-to-end digital asset ecosystem.
Futu Securities is another key player advancing in this space. Xie Zhijian, Managing Director at Futu, revealed the firm has supported Bitcoin and Ethereum trading against HKD and USD since August 2024, later adding more compliant trading pairs. Since launching deposit functionality for Bitcoin and Ethereum in May 2025, user engagement has grown steadily.
“We’ve seen strong client interest and increased trading activity around digital assets,” Xie said. “By enabling coin deposits, we allow qualified Hong Kong investors to seamlessly move funds within our platform and access broader investment opportunities.”
While major players lead the charge, mid-sized brokerages are watching closely. A representative from a central China-based firm’s overseas division said internal discussions are ongoing: “We’re aware of the market momentum, but any move must be fully compliant. Regulatory alignment remains our top priority.”
Beyond Type 1 upgrades, the SFC has also approved:
- 37 firms enhancing their Type 4 license (advisory on virtual asset trades), including Ping An Securities Hong Kong and Zhongtai International.
- 40 asset managers upgrading their Type 9 license to manage portfolios with over 10% exposure to virtual assets—among them Orient Asset Management (Hong Kong).
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The Future of Chinese Brokerages in Digital Finance
Can virtual assets become a breakthrough avenue for brokerages in an increasingly competitive landscape? Industry experts believe yes.
“Guotai Junan International has set a precedent,” said Sun Ting. “It proves that mainland-headquartered brokerages can operate complex digital asset businesses within strict regulatory frameworks—paving the way for others.”
She identified two core capabilities defining the next phase of competition:
- Clearing Hub Function: Using stablecoins for efficient cross-border payments, challenging traditional systems like SWIFT.
- Securitization Engine: Leading the tokenization of real-world assets (RWAs), such as bonds and funds, enabling fractional ownership and 24/7 settlement.
These innovations don’t just diversify income—they transform balance sheets. Stablecoin reserves open new avenues for capital deployment, enabling synergies between light-capital advisory services and capital-intensive activities.
Over 30 Chinese brokerages have established subsidiaries in Hong Kong, with 13 listed both on mainland and Hong Kong exchanges (A+H). As regulatory clarity improves and infrastructure matures, more firms are expected to follow suit.
“Virtual asset trading expands international footprints and creates new profit centers,” said Luo Zuanhui. “We remain positive on the sector’s long-term growth potential.”
Donghai Securities’ Tao Shengyu added that regulatory endorsement—evidenced by Guotai Junan International’s approval—signals strong institutional support. “Further license approvals could continue fueling investor sentiment in the brokerage sector. Thematic investments in digital finance are worth watching.”
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Frequently Asked Questions
Q: What does upgrading to a Type 1 virtual asset license allow brokerages to do?
A: It permits licensed firms to offer cryptocurrency and stablecoin trading services, provide investment advice during trades, and distribute related financial products like ETFs and OTC derivatives.
Q: Why is Hong Kong becoming a hub for virtual asset trading?
A: With clear regulations like the A-S-P-I-Re roadmap and upcoming Stablecoin Bill, Hong Kong offers a compliant gateway for global digital finance innovation—especially for mainland-linked firms.
Q: Can mainland investors use these services?
A: Currently, these services are available primarily to qualified investors in Hong Kong. Mainland access depends on cross-border regulatory frameworks and individual brokerage policies.
Q: How do stablecoins create new revenue opportunities for brokerages?
A: Through cross-border settlement fees, reserve asset management, and integration into yield-bearing financial products like structured notes.
Q: Will more Chinese brokerages enter the virtual asset space?
A: Yes—driven by competitive pressure and regulatory clarity, especially among firms with established Hong Kong operations.
Q: Are there risks involved in brokerages offering crypto trading?
A: Yes, including market volatility, cybersecurity threats, and evolving compliance requirements. However, regulated platforms mitigate these through strict KYC/AML protocols and custodial safeguards.
Core Keywords: virtual asset trading, brokerage revenue growth, digital finance, stablecoin, tokenized securities, Hong Kong SFC, crypto regulation, RWA tokenization