On June 25, Cathay International Holdings (formerly Cathay Capital International), a key subsidiary of the newly formed Cathay Haitong Financial Group, saw its stock surge over 190% intraday — one of the most explosive moves in the Hong Kong market that day. The rally followed official confirmation that the firm had received approval from the Hong Kong Securities and Futures Commission (SFC) to expand its securities license to include virtual asset trading services.
This landmark development signals a pivotal shift: a major traditional financial institution is now entering the crypto space. Combined with growing interest among Hong Kong-listed firms in holding digital assets and the upcoming implementation of Hong Kong’s Stablecoin Ordinance, the region may be on the cusp of a broader “crypto-stock” trend — where equities gain momentum not just from fundamentals, but from blockchain integration and digital asset exposure.
The Rise of a Financial Powerhouse
Cathay International operates across six core business segments, with its brokerage arm providing clients access to securities, futures, options, leveraged foreign exchange, and insurance brokerage services. As a subsidiary of Cathay Haitong Securities — formed in 2024 through the merger of two Chinese brokerage giants, Guotai Junan and Haitong Securities — it benefits from deep institutional infrastructure and an extensive client base.
While Haitong Securities dates back to 1988 and Guotai Junan was established in 1992 (via the merger of Guotai and Junan Securities), the newly rebranded Cathay Haitong Group has made clear its ambitions extend beyond traditional finance. With the June 25 SFC approval, Cathay International becomes the first mainland-affiliated broker in Hong Kong authorized to offer comprehensive virtual asset trading services, including transaction execution, advisory, and product distribution for OTC derivatives linked to crypto assets.
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This isn't just about listing Bitcoin or Ethereum for retail trading — it's about bridging institutional capital with blockchain-based finance. Soon, investors will be able to buy and sell major cryptocurrencies like BTC and ETH, as well as stablecoins such as USDT, directly through Cathay International’s regulated platform. More importantly, this marks a strategic pivot toward Real-World Asset (RWA) tokenization and digital securities, positioning the firm at the forefront of Web3 financial innovation.
Two Paths to Crypto: Cathay vs. HashKey
The rise of crypto-enabled financial players in Hong Kong reflects two distinct strategic models: one rooted in traditional finance expanding into digital assets (Cathay International), and another built natively within the Web3 ecosystem (HashKey).
HashKey Exchange, one of Hong Kong’s first SFC-licensed crypto platforms, has taken a Web3-first approach. It offers retail investors access to BTC and ETH spot trading, integrates with local banking partners like ZA Bank and Standard Chartered for fiat on-ramps, and provides OTC desks, custody solutions, and infrastructure development for stablecoins and tokenized assets. Its parent company, HashKey Group, is also active in blockchain venture capital.
In contrast, Cathay International’s strategy leans into institutional-grade asset tokenization. Since January, it has secured SFC approval for issuing and distributing tokenized structured notes, funds, and digital bonds — projects greenlit in April and May 2025. Rather than competing directly with HashKey on retail trading volume, Cathay is building a "tokenized investment bank" model, focusing on transforming traditional financial instruments into blockchain-native products.
Think of it this way: if you're looking to trade Bitcoin or earn yield via staking, HashKey is your go-to compliant gateway. But if you're an institution seeking to issue a tokenized government bond or launch a blockchain-based ETF, Cathay International could become your underwriter and settlement provider.
These are not competing visions — they’re complementary forces shaping Hong Kong’s future as a global virtual asset hub.
From Stablecoin Hype to the ‘Crypto-Stock’ Momentum
Hong Kong’s legislative momentum is accelerating investor confidence. The recently passed Stablecoin Ordinance, set to take effect August 1, 2025, establishes a clear regulatory framework for issuers of algorithmic and reserve-backed stablecoins. Initial approved entities include JD ChainTech, Circle Innovation Technology, and a consortium led by Standard Chartered Hong Kong.
Following the announcement, related "stablecoin概念股" (concept stocks) such as ZhongAn Online, JD.com, and LianLian Digital saw sharp rallies — proof that policy catalysts are now directly influencing equity valuations in Hong Kong.
At the same time, a parallel trend is unfolding globally: public companies are increasingly adding crypto to their balance sheets. Inspired by MicroStrategy’s BTC accumulation strategy, firms like SBET (buying ETH) and DFDV (buying SOL) have seen their shares multiply tenfold. On June 24, Nano Labs announced a $500 million convertible bond private placement to fund its BNB reserve strategy — sending its stock up 170% intraday.
Could this “crypto-treasury” movement take root in Hong Kong?
Early signs say yes.
The Hong Kong ‘MicroStrategy’ Plays
Several Hong Kong-listed companies have already embraced digital asset holdings:
- Boya Interactive: Since 2023, it has accumulated 3,351 BTC and 297 ETH — the largest crypto holdings among HK-listed firms. Its share price nearly doubled from HK$3.3 to HK$6.8 between April and May 2025.
- Country Garden Innovative: Purchased HK$36 million worth of Bitcoin between March and August 2024.
- Bluehole Interactive: Held USD 8.8 million in BTC and ETH as of mid-2024.
These companies are becoming focal points for investors chasing exposure to both crypto appreciation and corporate innovation.
Beyond direct holdings, blockchain infrastructure firms are also gaining traction:
- OKLink (OKE): A leading blockchain explorer provider.
- Alpha Networks: Specializes in digital asset custody.
- OSL Group: Offers institutional-grade digital asset exchange and custodial services.
All three saw strong performance during May’s market rally, reflecting growing demand for compliant, enterprise-level crypto infrastructure.
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FAQ: Understanding the Crypto-Stock Trend in Hong Kong
Q: What triggered Cathay International’s 190% stock surge?
A: The spike followed official SFC approval allowing Cathay International to offer virtual asset trading services — making it the first mainland-affiliated Hong Kong broker with full crypto trading rights.
Q: How is Cathay International different from crypto-native exchanges like HashKey?
A: While HashKey focuses on retail crypto trading and Web3 accessibility, Cathay International is building institutional services around tokenized securities and RWA — acting more like a digital investment bank.
Q: Are more Hong Kong stocks likely to follow the ‘crypto treasury’ model?
A: Yes. With regulatory clarity improving and early adopters seeing stock gains, more firms may explore Bitcoin or Ethereum reserves as a new form of corporate treasury strategy.
Q: What impact does the Stablecoin Ordinance have on the market?
A: It provides legal certainty for stablecoin issuance and usage, boosting investor confidence in related financial technologies and driving capital into aligned stocks.
Q: Can individuals trade crypto through Cathay International yet?
A: Not immediately — while approved, full service rollout depends on system integration and compliance checks. Retail access is expected within months.
Q: Is this ‘crypto-stock’ trend sustainable?
A: If adoption continues among institutions and regulation remains supportive, yes. The convergence of traditional finance and blockchain is structural — not just speculative.
With policy tailwinds, institutional adoption, and rising retail interest, Hong Kong’s market is evolving into a hybrid financial ecosystem where crypto-native innovation meets traditional capital markets. Whether through direct asset purchases or blockchain-based product innovation, the line between “stock” and “crypto” is blurring — creating new opportunities for informed investors.
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