Hong Kong-based online brokerage firm Futu Securities has received regulatory approval to launch virtual asset trading financing services for eligible clients, becoming the first brokerage in Hong Kong to offer such a product.
The company recently received approval to offer new services after Hong Kong’s Securities and Futures Commission upgraded its license. This upgrade now allows the firm to include crypto financing options.
Traditional securities can now help fund crypto trades
With the new system, qualified investors can borrow money for virtual asset trading by using their existing investments as collateral.
As a crypto investor, this is a big deal for me. Before, if I wanted to borrow money through my brokerage to invest in stocks, I couldn’t then use that same borrowed money to buy crypto. Now, that restriction is gone. Basically, I can use the same collateral – like stocks I already own – to get leverage and trade digital assets through my existing brokerage account. It opens up a lot more options for getting exposure to crypto with regulated leverage.
This new development shows Hong Kong continuing to connect traditional financial systems with the world of digital assets, all while ensuring everything operates within clear rules and regulations.
Hong Kong continues expanding crypto infrastructure
This approval is part of Hong Kong’s ongoing efforts to create clear rules for investing in digital assets, both for large institutions and individual investors.
Last year, the SFC took steps to allow more cryptocurrency businesses to operate legally. This included new rules letting licensed companies offer a broader selection of virtual asset products and services.
The latest move could provide investors with easier access to capital for crypto trading while keeping those activities within Hong Kong’s regulated financial system.
Crypto collateral still faces challenges
While the SFC relaxed certain rules earlier this year regarding the use of virtual assets as collateral, industry participants still face significant capital-efficiency hurdles.
In February, the regulator clarified that, until new capital rules are in place, firms must fully deduct virtual assets (like cryptocurrencies) from their capital. Because of this, most companies still prefer using traditional investments instead of cryptocurrencies when creating financial products.
Analysts say Futu’s latest offering could serve as a test case for how regulated brokerages integrate crypto financing into mainstream investment services while broader reforms continue to evolve.
Growing convergence between traditional finance and crypto
Futu’s approval highlights the increasing convergence between conventional brokerage services and digital assets. As regulators provide clearer frameworks, major financial institutions are gradually expanding their crypto-related offerings rather than treating digital assets as a separate market.
The launch also reinforces Hong Kong’s position as one of Asia’s most active jurisdictions for regulated crypto adoption, with authorities seeking to attract digital asset businesses while maintaining investor protection standards.
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2026-06-11 14:46