The race to secure virtual asset trading licenses is reshaping the financial landscape, igniting momentum across both Hong Kong and mainland Chinese stock markets. What began as a surge in Hong Kong-listed brokers has now spilled into A-share securities firms, with investor attention shifting from Guotai Junan International to Tianfeng Securities, which saw a near涨停 (limit-up) move on June 27, closing 7.89% higher.
This market excitement stems from a landmark development: Guotai Junan International, a subsidiary of Guotai Haitong Securities, officially received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its Type 1 license—allowing traditional securities trading—to include virtual asset trading services and advisory on such assets. This makes it the first mainland-backed securities firm in Hong Kong to offer comprehensive digital asset solutions, setting a new benchmark in the industry.
👉 Discover how digital asset integration is redefining brokerage profitability.
A Strategic Leap: From Traditional Brokerage to Digital Asset Hub
The upgraded license enables investors to trade major cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether (USDT), directly through Guotai Junan International’s platform. Beyond simple execution, the firm now provides end-to-end services including trading, custody, advisory, product issuance, and over-the-counter derivatives linked to virtual assets.
According to a leading non-bank financial analyst from an East China-based brokerage, this move represents a strategic evolution of the firm’s existing Type 1 license—expanding its service scope beyond equities into the fast-growing digital asset ecosystem.
Regulatory clarity has played a key role. The SFC emphasizes that investors should only use licensed platforms for virtual asset transactions. In February 2025, it launched the A-S-P-I-Re regulatory roadmap, streamlining market access and compliance for virtual asset service providers—an initiative that has accelerated institutional adoption.
“Guotai Junan International has effectively transformed from a traditional brokerage into a full-stack digital asset services hub,” said Sun Ting, Non-Bank Financials Lead Analyst at Dongwu Securities. “This creates high-margin revenue streams—from trading commissions and stablecoin clearing fees to structured derivative design and issuance.”
Moreover, the timing aligns with Hong Kong’s broader ambition to become a global virtual asset center. With the Legislative Council expected to pass the Stablecoin Bill in 2025, the territory is positioning itself as a regulated gateway for tokenized finance. Firms like Guotai Junan International now hold first-mover advantages in emerging areas such as stablecoin issuance and RWA (Real World Asset) tokenization.
Luo Zuahui, Lead Analyst at Shenwan Hongyuan, noted that this license introduces a new asset class—virtual assets—into Guotai Haitong’s international brokerage operations. Given Hong Kong’s evolving regulatory framework and rising demand for港元-pegged stablecoins, the potential for international business growth is substantial.
Industry-Wide Momentum: Brokers Race to Capture Digital Demand
As of June 27, 2025, the SFC listed 41 institutions that have upgraded their Type 1 licenses to offer virtual asset trading under a “comprehensive account” arrangement. Among them are Tianfeng International Futures & Securities, the offshore arm of Tianfeng Securities, signaling growing mainland interest.
Guotai Junan International has been proactive in building its digital ecosystem:
- In 2024, it launched structured products based on spot Bitcoin and Ethereum ETFs.
- In early 2025, it received SFC approval to distribute and advise on tokenized securities.
- It initiated a digital bond issuance program.
- On June 24, 2025, it secured full virtual asset trading rights—completing its digital service stack.
Futu Securities is another key player adapting quickly. Xie Zhijian, Managing Director at Futu, revealed that the firm has supported BTC/ETH trading pairs against HKD and USD since August 2024. In May 2025, it introduced crypto deposit functionality, allowing qualified Hong Kong investors to deposit digital assets directly—a rare feature among licensed brokers.
“We’ve seen rising engagement and transaction volume in crypto-related assets,” Xie said. “Clients are clearly interested. Once funds are deposited and traded, they can be redeployed across other investment products on our platform.”
Other institutions are following suit:
- 37 firms have upgraded their Type 4 license to include advisory on virtual assets (e.g., Ping An Securities HK, Zhongtai International).
- 40 asset managers now hold Type 9 licenses allowing them to manage portfolios with over 10% exposure to virtual assets (e.g., Eastern Asset Management HK).
While some mid-sized brokers remain cautious—citing regulatory complexity—one Central China-based overseas business executive confirmed internal discussions are underway. “We’re watching closely,” he said. “Compliance will be our top priority.”
👉 Explore how licensed platforms are unlocking next-gen financial services.
The Future of Brokerage: Building Cross-Border Digital Infrastructure
Can virtual assets become a game-changer for securities firms? Industry experts believe so.
Sun Ting emphasized that Guotai Junan International’s success proves mainland brokers can meet stringent compliance standards—paving the way for others. “The competitive landscape is shifting,” she said. “It’s no longer just about low-cost trading access. The real advantage lies in building cross-border digital financial infrastructure.”
This infrastructure consists of two pillars:
- Clearing Hub: Leveraging stablecoins for efficient cross-border payments—potentially challenging traditional systems like SWIFT.
- Securitization Engine: Leading the tokenization of real-world assets such as bonds and funds, enabling fractional ownership and 24/7 settlement.
These capabilities don’t just diversify revenue—they transform business models. By managing stablecoin reserves and tokenized portfolios, brokers can expand their balance sheets through capital-light yet high-margin activities, creating synergy between light and heavy capital operations.
Over 30 Chinese brokers have established subsidiaries in Hong Kong, and 13 are dual-listed (A+H). With Hong Kong serving as a strategic offshore gateway, the path for more firms to enter virtual asset trading is clear.
“Licensed virtual asset operations signal regulatory endorsement,” said Tao Shengyu, Lead Analyst at Donghai Securities. “Further license approvals could continue to drive investor sentiment in the brokerage sector. This theme offers compelling allocation opportunities.”
👉 Learn how regulatory progress is fueling institutional crypto adoption.
Core Keywords:
- Virtual asset trading
- Securities firms
- Hong Kong SFC
- Stablecoin
- Tokenization
- RWA (Real World Assets)
- Digital finance
- Brokerage innovation
Frequently Asked Questions (FAQ)
Q: What does upgrading a Type 1 license mean for a securities firm?
A: Upgrading allows the firm to offer virtual asset trading alongside traditional securities under a unified account structure—expanding service offerings and revenue potential while meeting strict SFC compliance standards.
Q: Why is Hong Kong becoming a hub for virtual asset services?
A: Thanks to clear regulations like the A-S-P-I-Re roadmap and upcoming Stablecoin Bill, Hong Kong offers a compliant environment for institutional-grade digital finance, attracting global and mainland players alike.
Q: Can mainland investors use these services?
A: Currently, these services are available primarily to qualified investors in Hong Kong. Mainland access remains restricted due to China’s domestic crypto trading ban.
Q: How do stablecoins benefit securities firms?
A: Stablecoins enable faster cross-border settlements, reduce counterparty risk, generate clearing fees, and open doors to yield-bearing reserve management—transforming how brokers handle liquidity.
Q: What is RWA tokenization, and why does it matter?
A: RWA tokenization involves converting physical or financial assets (like real estate or bonds) into blockchain-based tokens. It enhances liquidity, transparency, and accessibility—offering brokers new product design and distribution opportunities.
Q: Will more Chinese brokers enter the virtual asset space?
A: Yes. With early movers proving viability and regulatory support strengthening, analysts expect more mainland-backed firms in Hong Kong to apply for upgraded licenses in the coming years.