Hong Kong-based crypto broker Victory Securities said Monday that it plans to launch structured products for professional investors by the end of the year. It also aims to provide specialized products that let clients earn extra yield on stablecoins.
The broker announced it secured regulatory approval from the Securities and Futures Commission. This makes it the first licensed broker in Hong Kong to market and distribute cash-settled virtual asset structured products to professional investors, it said.
Structured Products Aim for Higher Returns and Risk Diversity
Structured crypto products are designed to offer customized returns. They leverage the performance of individual cryptocurrencies or a mix of them. These products help investors pursue higher potential returns and meet various goals, such as arbitrage.
Globally, these products are evolving and extending beyond traditional financial hubs. This trend reflects the growing incorporation of cryptocurrencies into advanced investment strategies. In the US, Grayscale Investments offers crypto exposure through trusts. Meanwhile, platforms like OKX are creating structured products tailored for different risk levels.
Kennix Chan, executive director at Victory Securities, pointed out that the virtual asset market currently experiences a shortage of strategic investment products.
“The regulatory green light for Victory Securities to market virtual asset structured products signifies an important step forward for Hong Kong to build a comprehensive virtual asset ecosystem,” he added.
Hong Kong Accelerates Licensing for Virtual Asset Platforms
Hong Kong has recently been taking more active steps to boost its virtual asset sector. The Securities and Futures Commission (SFC) is speeding up the licensing process for Virtual Asset Trading Platform (VATP) applicants with provisional approvals and aims to issue the first official licenses by year-end.
Meanwhile, HKEX, the city’s stock exchange operator, plans to launch benchmark indices for Bitcoin and Ethereum starting November 15. These efforts reinforce Hong Kong’s status as Asia’s digital asset hub.
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