The world of digital finance took a significant leap forward when Guotai Junan International became the first Chinese-backed securities firm in Hong Kong to receive official approval to offer comprehensive virtual asset trading services. This landmark development, confirmed by the Hong Kong Securities and Futures Commission (SFC), marks a pivotal moment in the convergence of traditional finance and cryptocurrency markets.
Under its upgraded license, Guotai Junan International (stock code: 01788.HK) can now legally provide clients with direct access to trade major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), along with stablecoins like Tether (USDT). The firm is also authorized to offer investment advice on digital assets and distribute virtual asset-related financial products—including structured notes and over-the-counter derivatives.
This move has sent shockwaves through the financial sector, triggering a surge in investor interest and pushing shares of Guotai Junan International to volatile highs. Following a staggering 200% increase in market value, the stock saw another 90% spike before stabilizing—reflecting both excitement and caution in equal measure.
A Strategic Move in Hong Kong’s Digital Finance Evolution
Guotai Junan International's success didn’t happen overnight. It’s the result of years of strategic positioning in the digital asset space. In 2024, the company launched structured financial products based on virtual asset spot ETFs, becoming one of the first in Hong Kong to do so. By early 2025, it had already secured permissions to act as an introducing agent for virtual asset trading platforms and began distributing tokenized securities.
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The latest regulatory nod allows it to integrate crypto trading directly into its existing brokerage platform—offering clients a seamless experience where they can manage both traditional equities and digital assets under one roof. This integration is expected to set a new benchmark for full-service wealth management in Asia.
Broader Industry Impact: The Rise of Institutional Crypto Adoption
With this approval, Guotai Junan International joins a growing list of 40 institutions now licensed by the SFC to offer virtual asset services through integrated accounts. Other notable names include TF International (a subsidiary of Tianfeng Securities), Interactive Brokers, China Futures Securities, and ZhongAn Bank.
But this is just the beginning. Industry analysts predict that over the next 1–2 years, more mainland-connected brokers—including Huatai International and CITIC Securities International—will follow suit. Major players like Haitong International are closely monitoring developments, signaling that institutional adoption of digital assets is no longer speculative but inevitable.
The timing aligns with Hong Kong’s broader ambition to become a global virtual asset hub. The city has already approved 11 licensed crypto exchanges, with HashKey Exchange emerging as a key player. According to Zhu Zhenyu, Sales Director at HashKey, the platform has established partnerships with several leading Chinese financial institutions and plans to expand collaboration further.
Given Guotai Junan’s positioning and service scope, speculation is mounting that HashKey could be its primary exchange partner—providing secure custody, liquidity, and compliance infrastructure behind the scenes.
Stablecoins Take Center Stage in Global Finance
While much attention has focused on Bitcoin and Ethereum, stablecoins are quietly becoming the backbone of next-generation financial infrastructure. These fiat-collateralized digital currencies—like USDT and USD Coin (USDC)—offer price stability while enabling fast, low-cost cross-border transactions.
Recent global developments underscore their rising importance:
- Circle, issuer of USDC, went public on the NYSE with strong investor demand.
- The U.S. Senate passed bipartisan legislation to regulate stablecoin issuance.
- Global giants like Walmart and Amazon are exploring proprietary stablecoin projects.
In Hong Kong, the government announced that the Stablecoin Ordinance will take effect on August 1, 2025. From that date, any entity issuing fiat-backed stablecoins—especially those pegged to the Hong Kong dollar—must obtain a license from the SFC.
This positions Hong Kong not only as a gateway for crypto innovation but also as a strategic node in future cross-border payment networks—particularly along Belt and Road economic corridors where efficient settlement systems are in high demand.
How Traditional Finance Is Being Reshaped by Crypto
The entry of established brokers into crypto trading represents more than just diversification—it signals a fundamental shift in the role of financial institutions.
As highlighted by CITIC Securities Research, traditional brokers are evolving from mere transaction facilitators into digital asset enablers. By integrating blockchain-based services, they’re transforming into platforms that support asset tokenization, decentralized finance (DeFi) participation, and even cross-border clearing via stablecoins.
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According to Haitong Securities analysts, this transformation could significantly enhance broker valuations. Firms that successfully bridge traditional capital markets with digital assets may see improved margins, higher client retention, and expanded revenue streams from custody, staking, and advisory services.
Frequently Asked Questions (FAQ)
Q: What does "licensed crypto trading" mean for investors?
A: It means investors can now trade cryptocurrencies like Bitcoin and Ethereum through a regulated brokerage account—similar to buying stocks—with protections around custody, transparency, and compliance.
Q: Can all clients start trading crypto immediately?
A: Not necessarily. Brokers typically roll out such services gradually, often starting with qualified institutional or high-net-worth individuals before expanding to retail clients.
Q: Is my crypto safe with a licensed broker?
A: Licensed brokers must adhere to strict custody rules set by regulators like the SFC. Assets are usually held in cold storage or through approved custodians, reducing risk compared to unregulated exchanges.
Q: Will other Chinese brokers follow this trend?
A: Yes. Multiple mid- and large-sized mainland-connected firms are actively pursuing similar licenses. Regulatory clarity in Hong Kong makes it an ideal testing ground before potential expansion into broader markets.
Q: How do stablecoins benefit international investors?
A: Stablecoins enable faster and cheaper cross-border transfers without currency conversion delays. They’re increasingly used for remittances, trade settlements, and hedging against local currency volatility.
Q: What risks should investors consider?
A: While regulation improves safety, crypto markets remain volatile. Investors should assess their risk tolerance and understand that digital assets are subject to market swings, regulatory changes, and technological risks.
The Road Ahead: From Experimentation to Mainstream Integration
Guotai Junan International’s breakthrough isn’t just about one company—it’s a signal of systemic change. As more brokers gain access to virtual asset services, we’re likely to see:
- Wider availability of crypto-linked structured products
- Increased adoption of tokenized real-world assets (RWAs)
- Growth in institutional-grade custody solutions
- Expansion of DeFi-integrated investment strategies
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For investors, this means greater choice, better protection, and new ways to grow wealth in a digital-first economy. For the financial industry, it’s an invitation to innovate responsibly within a clear regulatory framework.
As Hong Kong continues to build its reputation as a forward-thinking financial center, events like this underscore its role as a bridge between East and West—and between traditional finance and the future of money.
The era of institutional crypto is no longer coming. It’s already here.