The momentum behind virtual asset trading is gaining traction across capital markets, extending from Hong Kong to mainland China’s A-share market. While attention initially focused on Guotai Junan International in Hong Kong, investor interest has now shifted toward TF Securities in the A-share space. According to Wind data, TF Securities surged nearly 10% intraday on June 27, closing up 7.89%, reflecting growing market optimism around brokerages embracing digital assets.
This surge follows a landmark development: Guotai Junan International, a subsidiary of Guotai Haitong Securities, officially received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing Type 1 license—permitting securities trading—to include virtual asset trading services and advisory capabilities related to such assets. This makes it the first mainland-backed securities firm in Hong Kong authorized to offer comprehensive virtual asset transaction solutions.
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A Strategic Leap into Digital Finance
Under the upgraded license, investors can now trade major cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like Tether (USDT), directly through Guotai Junan International’s platform. The firm’s service scope now spans trading execution, investment advice, product distribution, and even issuance of virtual asset-linked derivatives—marking a full-chain integration of digital financial services.
“This isn’t just an incremental upgrade—it’s a strategic pivot,” said an industry analyst specializing in non-bank financial institutions. “By securing this license, Guotai Junan International has positioned itself at the forefront of cross-border digital finance, setting a precedent that could accelerate adoption across other Chinese brokerages.”
The SFC emphasizes that investors should only engage in virtual asset transactions through licensed platforms. In February 2025, the regulator unveiled its “A-S-P-I-Re” roadmap—a clear regulatory framework designed to streamline market entry and enhance compliance efficiency for virtual asset service providers.
Unlocking High-Value Revenue Streams
According to Sun Ting, Chief Non-Bank Financial Analyst at Dongwu Securities, the new capabilities allow Guotai Junan International to evolve from a traditional brokerage into a digital asset solutions hub. Key revenue opportunities include:
- Transaction fees from crypto and stablecoin trades
- Revenue sharing from cross-border stablecoin settlements
- Fees from structuring and issuing tokenized derivatives
“This creates high-margin income streams,” Sun explained. “More importantly, it gives them first-mover advantage in emerging areas like RWA (real-world asset) tokenization and Hong Kong dollar-pegged stablecoin issuance, both central to Hong Kong’s ambition to become a global virtual asset hub.”
The approval also aligns with broader regulatory momentum. With Hong Kong’s Legislative Council passing the Stablecoin Bill Draft in 2025, the financial center is making decisive moves toward integrating digital assets into its core financial infrastructure.
Industry-Wide Transformation Underway
As of June 27, 2025, the SFC listed 41 institutions that have upgraded their Type 1 licenses to support virtual asset trading under a consolidated account structure. Among them are Guotai Junan International and TF International Securities & Futures, a subsidiary of TF Securities—indicating growing mainland interest in expanding overseas digital offerings.
Guotai Junan International has been proactive in building its digital ecosystem:
- In 2024, it launched structured products based on spot crypto ETFs—a first in Hong Kong.
- It obtained SFC approval for virtual asset platform referral agent services.
- In early 2025, it gained permission to distribute tokenized securities and began offering digital bond issuance.
- On June 24, it secured full virtual asset trading rights.
Futu Securities is another key player advancing in this space. Xie Zhijian, Managing Director at Futu, noted that since launching Bitcoin and Ethereum trading pairs against HKD and USD in August 2024, user engagement has steadily increased.
“We’ve seen rising activity and strong client interest,” Xie said. “In May 2025, we introduced crypto deposit functionality, allowing eligible Hong Kong investors to deposit assets directly into their accounts—a feature offered by only a few brokers.”
This capability enables users to deposit crypto, trade within the platform, and reinvest proceeds into equities, funds, or other asset classes—creating a truly integrated investment experience.
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Regulatory Expansion Beyond Trading
The shift isn’t limited to trading licenses. The SFC has also approved:
- 37 firms with upgraded Type 4 licenses (advisory on virtual assets), including Ping An Securities Hong Kong and Zhongtai International.
- 40 asset managers with enhanced Type 9 licenses, allowing them to manage portfolios with over 10% exposure to virtual assets—among them Oriental Asset Management (Hong Kong).
These developments signal a systemic transformation in how financial institutions approach digital assets—not just as speculative instruments but as legitimate components of diversified portfolios.
The Road Ahead: Infrastructure, Innovation & Competition
Industry experts agree that virtual assets are poised to become a strategic differentiator for brokerages operating internationally.
“Competition is shifting from low-value transaction routing to building core capabilities in cross-border digital finance,” said Sun Ting. She highlighted two critical pillars:
- Clearing Hub Function: Using stablecoins to facilitate faster, cheaper cross-border payments—potentially challenging traditional systems like SWIFT.
- Securitization Engine: Leading the tokenization of real-world assets such as bonds and mutual funds, unlocking liquidity and accessibility.
These innovations don’t just improve fee income—they open new balance sheet opportunities. Stablecoin reserves, for example, could become yield-generating assets, enabling both light-capital advisory models and capital-intensive financing activities to coexist and scale together.
With over 30 mainland brokerages having established subsidiaries in Hong Kong—and 13 dual-listed on both A-shares and H-shares—the region remains a springboard for international expansion. As regulatory clarity improves, more firms are expected to follow suit.
“While we’re actively discussing it internally, nothing is confirmed yet,” said an executive from a mid-sized central China brokerage. “Regulatory compliance remains our top priority.”
FAQs: Understanding the Virtual Asset Shift
Q: What does upgrading to a virtual asset-enabled Type 1 license mean?
A: It allows brokerages to offer cryptocurrency and stablecoin trading alongside traditional securities under one integrated account system—subject to strict SFC oversight.
Q: Can all clients access these services immediately?
A: No. Access is typically restricted to professional or accredited investors who meet specific risk tolerance and capital requirements set by the SFC.
Q: How might this impact brokerage valuations?
A: By diversifying revenue into higher-margin digital asset services, brokerages may see improved profitability metrics, attracting growth-focused investors.
Q: Is there significant demand from retail investors?
A: Yes. Platforms like Futu report increasing user engagement with crypto features, suggesting strong underlying retail interest when offered within compliant frameworks.
Q: Will mainland China allow similar services soon?
A: Not in the near term. While offshore subsidiaries operate under Hong Kong regulations, mainland China maintains restrictions on crypto trading. However, regulatory observation of Hong Kong’s model may inform future policy discussions.
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Conclusion: A New Era for Brokerage Business Models
The approval granted to Guotai Junan International marks more than a single firm’s achievement—it signals the beginning of a structural shift in the brokerage industry. As Hong Kong solidifies its role as a regulated virtual asset hub, Chinese brokerages with international arms are uniquely positioned to benefit.
From enhanced transaction fees to pioneering roles in stablecoin ecosystems and asset tokenization, the opportunities are substantial. Analysts like Luo Zuahui from Shenwan Hongyuan and Tao Shengyu from Donghai Securities believe this trend will not only drive individual company growth but also re-rate the entire brokerage sector, especially those with strong Hong Kong operations.
With strategic infrastructure development underway and investor appetite rising, virtual asset integration is no longer speculative—it’s becoming a core component of modern financial services.