Despite a recent HK$245 million loss, Bitfire, a cryptocurrency firm based in Hong Kong, is continuing to push forward with its plans to launch a stablecoin.
Summary
- Bitfire expects a net loss of up to HK$245 million for the six months through March, nearly 19 times larger than its HK$12.3 million loss a year earlier.
- HK$152 million of the loss came from a decline in the value of Bitfire’s held crypto assets, reflecting weak market conditions in the period.
- Bitfire is expanding into stablecoins and asset management, citing strong demand from institutional and ultra-high-net-worth clients onboarded since August 2025.
On May 21, Bitfire announced it expects to report a loss of up to HK$245 million (about $31.28 million) for the six months ending in March 2026. This is a significant downturn from the HK$12.3 million profit it made during the same period last year – nearly 19 times larger than the previous loss.
The company reported a larger loss mainly because the value of its cryptocurrency holdings decreased by HK$152 million. Increased costs for things like professional services, improving customer features, and research also played a role in the loss.
新火集團 CEO 翁曉奇 5 月 21 日出席第九屆世界金融論壇年會，分享了關於【融合AI的Web3將成為新時代數字金融底座】的最新思考，並首度拋出了「Web4」的未來願景：…
— 新火集团 Bitfire (@_BitfireGroup) May 22, 2026
Why Bitfire is accelerating its stablecoin push despite mounting losses
Livio Weng, CEO of Bitfire, believes stablecoins are essential to Hong Kong’s growing Web3 industry. His company plans to focus on incorporating stablecoins that meet Hong Kong regulations into its payment and transaction processes.
Since upgrading its services in August 2025, the company has signed up hundreds of clients – including major institutions and very wealthy individuals – and they’ve all requested access to stablecoins.
In April 2026, Hong Kong’s financial regulator (HKMA) initially approved stablecoin licences for only two banks: HSBC and Standard Chartered. This limited launch means Bitfire is likely to work with approved stablecoin issuers as a technology partner, rather than becoming an issuer itself. Bitfire already holds several financial licences from the SFC, allowing it to provide related services.
What the stablecoin opportunity looks like for Bitfire
Hong Kong’s strict regulations make it difficult for major international exchanges to operate there. Bitfire, as a licensed virtual asset manager focused on institutional clients, is well-positioned to offer stablecoins that meet these regulations. As Crypto.news has reported, Hong Kong’s financial authority is also increasing oversight of virtual asset companies, including those dealing with and storing digital assets, as part of its new stablecoin licensing rules.
Bitfire is heavily investing in professional services and research & development, likely to prepare for the growing demand for stablecoins from institutions. This investment seems to be happening faster than Hong Kong’s current, limited rollout allows. Crypto.news has been following Hong Kong’s broader attempts to attract institutional investors to all licensed cryptocurrency platforms.
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2026-05-22 20:34