Victory Securities to Launch Structured Crypto Products
Victory Securities, a Hong Kong-based cryptocurrency broker, announced on Monday its intention to launch structured products targeted at professional investors by the end of this year. Additionally, the firm is set to introduce specialized offerings that will allow clients to earn enhanced yields on stablecoins, signaling a strategic move to diversify investment opportunities.
Regulatory Approval Marks a Milestone
In a significant development, Victory Securities has received regulatory approval from the Securities and Futures Commission (SFC) in Hong Kong. This achievement positions the firm as the first licensed broker in the region authorized to market and distribute cash-settled virtual asset structured products specifically for professional investors. The approval not only underscores Victory Securities’ commitment to innovation but also sets a precedent for future financial products in the realm of virtual assets.
Understanding Structured Crypto Products
Structured crypto products are designed to provide tailored returns based on the performance of specific cryptocurrencies or a combination thereof. These financial instruments enable investors to pursue potentially higher returns while addressing various investment strategies, including arbitrage opportunities. The evolution of these products reflects an increasing trend towards integrating cryptocurrencies into advanced investment methodologies worldwide. For example, Grayscale Investments in the United States offers exposure to crypto through trusts, while platforms like OKX are developing structured products suited to a range of risk levels.
Addressing the Market Gap
Kennix Chan, executive director at Victory Securities, highlighted the current market gap for strategic investment products in the virtual asset landscape. He emphasized that the regulatory endorsement for Victory Securities to market these structured products is not just a win for the firm, but a significant milestone for Hong Kong’s ambition to establish a well-rounded virtual asset ecosystem. This move is expected to enhance investment options for professional investors particularly interested in the digital asset domain.
Hong Kong’s Push for a Robust Virtual Asset Framework
Hong Kong is actively seeking to strengthen its virtual asset sector by expediting the licensing process for Virtual Asset Trading Platform (VATP) applicants. The SFC has been granting provisional approvals and aims to issue the first official licenses by the end of the year. In parallel, the Hong Kong Exchanges and Clearing Limited (HKEX) plans to launch benchmark indices for Bitcoin and Ethereum starting November 15. These initiatives reinforce Hong Kong’s positioning as a leading digital asset hub in Asia and demonstrate the city’s commitment to fostering a vibrant and innovative financial ecosystem.