Cathay Securities International (stock code: 1788) has officially announced that it has received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing securities trading license. This enhancement now allows the firm to provide virtual asset trading services and offer investment advice related to digital assets. As a result, clients will soon be able to trade major cryptocurrencies such as Bitcoin, Ethereum, and Tether directly through its platform.
The news triggered a massive market response, with the company’s shares closing at HK$3.70—the day’s highest price—marking an extraordinary surge of 198%.
First Chinese-Backed Broker in Hong Kong to Offer Full Virtual Asset Services
Cathay Securities International has become the first mainland China-affiliated securities firm in Hong Kong authorized to deliver comprehensive virtual asset trading solutions. This milestone positions the company at the forefront of digital finance integration within the region's regulated financial ecosystem.
The upgraded license enables the firm to:
- Facilitate direct trading of virtual assets
- Provide professional advice during virtual asset transactions
- Issue and distribute virtual asset-related products, including over-the-counter (OTC) derivatives
This regulatory green light underscores Hong Kong’s growing commitment to building a structured and secure environment for digital asset adoption. By aligning with SFC standards, Cathay Securities International not only strengthens investor confidence but also sets a precedent for other traditional financial institutions considering digital transformation.
Pioneering Role in Virtual Asset Structured Products Since 2024
Even before obtaining full trading authorization, Cathay Securities International demonstrated early leadership in the digital asset space. In 2024, the firm launched Hong Kong’s first structured financial product based on spot virtual asset ETFs—an innovative move that bridged conventional investment vehicles with emerging crypto markets.
Further regulatory milestones followed:
- Received SFC approval to act as an introducing agent for licensed virtual asset trading platforms
- Confirmed eligibility to distribute tokenized securities and provide related advisory services in early 2025
- Initiated digital bond issuance, signaling expansion into blockchain-based capital market instruments
These developments reflect a strategic roadmap toward digitizing financial services while maintaining strict compliance with regulatory expectations.
Understanding the SFC’s “ASPIRe” Regulatory Framework
In February 2025, the SFC unveiled its forward-looking ASPIRe roadmap—a comprehensive strategy designed to guide the evolution of Hong Kong’s virtual asset market. The framework is built around five core pillars:
- A – Access: Establishing clear entry requirements for market participants
- S – Safeguards: Enhancing investor protection mechanisms
- P – Products: Expanding approved virtual asset product offerings
- I – Infrastructure: Strengthening technological and operational foundations
- Re – Relationships: Fostering collaboration with industry stakeholders
Under this initiative, the SFC outlined 12 concrete actions aimed at maturing the digital asset ecosystem. While no fixed timeline has been published, key proposals include:
- Allowing staking services for professional investors
- Introducing margin financing (leveraged trading) for virtual assets
- Enabling virtual asset lending and borrowing activities
- Permitting the listing of new tokens accessible only to qualified investors
- Exploring derivative products tied to digital assets
Additionally, the SFC plans to finalize legislative preparations for a custodial licensing regime by the end of 2025, ensuring secure storage solutions are properly regulated. Operational standards for virtual asset trading platforms will also be refined to prevent market manipulation and combat illicit activities.
A notable component of ASPIRe includes the development of a regulatory framework for financial influencers (Finfluencers)—a response to rising concerns about misleading promotions and unlicensed advice disseminated through social media channels. This move highlights the SFC’s proactive stance in adapting regulations to modern digital behaviors.
Market Implications and Investor Outlook
The approval granted to Cathay Securities International marks a pivotal moment in the convergence of traditional finance and digital assets. With a well-established client base and strong institutional credibility, the firm is uniquely positioned to drive broader adoption of cryptocurrencies among retail and professional investors alike.
Moreover, this development aligns with Hong Kong’s ambition to become a leading hub for fintech innovation in Asia. By fostering collaboration between legacy financial players and blockchain-native entities, the region aims to create a balanced ecosystem where innovation thrives under robust oversight.
For investors, increased participation from reputable financial institutions reduces perceived risk and enhances liquidity across digital asset markets. It also opens doors to more sophisticated investment strategies, such as portfolio diversification using tokenized assets or exposure to decentralized finance (DeFi) through regulated intermediaries.
Frequently Asked Questions (FAQ)
Q: What does Cathay Securities International’s new license allow?
A: The upgraded license permits the firm to offer virtual asset trading services, provide investment advice on digital assets, and distribute related financial products—including OTC derivatives and tokenized securities.
Q: Which cryptocurrencies will be available for trading?
A: Initial offerings are expected to include major digital assets such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), with potential expansion based on market demand and regulatory approval.
Q: Is Hong Kong fully regulating crypto trading now?
A: Yes, Hong Kong has implemented a licensing regime for virtual asset trading platforms since 2023. Only SFC-licensed exchanges can serve retail investors, ensuring compliance with anti-money laundering (AML) and investor protection standards.
Q: Can all investors trade crypto through Cathay Securities International?
A: While retail access is anticipated, certain advanced services like staking or margin trading may initially be limited to professional investors, in line with SFC guidelines.
Q: How does the ASPIRe roadmap impact everyday investors?
A: The framework aims to increase product variety, improve platform safety, and enhance transparency—ultimately creating a more trustworthy environment for both novice and experienced investors.
Q: Will more banks and brokers enter the crypto space in Hong Kong?
A: Yes, Cathay’s move is likely to inspire other traditional financial institutions to pursue similar upgrades, accelerating institutional adoption across the region.
Final Thoughts
Cathay Securities International’s landmark approval reflects a broader shift in the financial world—one where digital assets are no longer fringe alternatives but integral components of modern portfolios. Backed by regulatory clarity and institutional infrastructure, Hong Kong continues to emerge as a model for responsible crypto innovation.
As boundaries between traditional finance and blockchain-based systems blur, investors stand to benefit from greater choice, enhanced security, and seamless access—all within a compliant framework. The next phase of financial evolution is underway, and it’s being shaped right here in Asia’s premier financial hub.