First Licensed Brokers in Digital Assets: How Eddid Financial Expanded the Market and Pioneered RWA Innovation

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The digital asset landscape in Hong Kong is undergoing a transformative shift, driven by regulatory clarity, institutional adoption, and forward-thinking financial firms. Among them, Eddid Financial has emerged as a trailblazer—leveraging its early-mover advantage to build a robust ecosystem in virtual asset services while actively shaping the future of real-world asset (RWA) tokenization.

As one of the first brokerage firms to receive a license upgrade from the Hong Kong Securities and Futures Commission (SFC) in September 2023, Eddid Securities Futures has spent the past two years expanding its footprint across digital asset trading, market making, ETF participation, and now RWA infrastructure. This strategic evolution reflects not only the firm’s agility but also Hong Kong’s broader ambition to become a global hub for compliant digital finance.

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The Strategic Advantage of Early Licensing

Securing an upgraded SFC license isn’t just a regulatory checkbox—it’s a gateway to institutional-grade credibility and expanded operational capacity. For Eddid Financial, this milestone marked the beginning of a comprehensive digital transformation.

Being among the first licensed brokers granted access to virtual asset activities positioned Eddid at the forefront of market innovation. With formal recognition of its compliance framework and risk management systems, the firm gained eligibility to participate in high-impact initiatives that define Hong Kong’s digital finance roadmap.

This early compliance foundation enabled Eddid to play a pivotal role when Hong Kong launched its landmark spot Bitcoin and Ethereum ETFs in 2024—the first in Asia for Bitcoin and among the world’s earliest for Ethereum.

Powering ETF Innovation with Full-Service Infrastructure

Eddid Securities Futures was one of the select few brokerages involved in the creation and redemption process of these spot crypto ETFs, contributing essential liquidity during their critical launch phase. But the firm didn’t stop at basic participation.

It became one of the first in Hong Kong to offer physical creation and redemption, allowing investors to subscribe to or redeem ETF shares using actual Bitcoin or Ethereum. This feature bridges the gap between traditional fund structures and native crypto workflows, enhancing flexibility for both retail and institutional players.

Moreover, Eddid introduced margin financing services for virtual asset spot ETFs, enabling clients to pledge their ETF holdings as collateral. This functionality increases capital efficiency, supports leveraged strategies, and empowers investors to optimize portfolio allocation without liquidating positions.

These innovations weren’t isolated moves—they were part of a cohesive strategy to deepen market infrastructure and support sustainable growth in digital assets.

"As an early licensed broker, we carry not only market opportunity but responsibility—to drive innovation responsibly and set benchmarks for the industry."
— Dr. Yang Weijian, Head of Virtual Assets, Eddid Financial

Building a Resilient Ecosystem Through Partnerships

Behind every scalable digital asset operation lies a strong network of partners and technology. Over the past two years, Eddid Financial has forged deep collaborations with licensed platforms such as HashKey Exchange and EXIO Limited, ensuring seamless connectivity between traditional capital markets and blockchain-based trading environments.

These partnerships have allowed Eddid to deliver 24/7 liquidity provisioning, improve trade execution speed, and enhance price discovery across multiple crypto pairs. Combined with a secure, low-latency trading platform, the result is a more efficient and resilient market structure—one capable of supporting increasing volumes and sophisticated investor demands.

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Breakthroughs in Stablecoins and Settlement Innovation

In May 2025, Hong Kong took another bold step forward with the passage of the Stablecoin Ordinance Bill by the Legislative Council. This legislation establishes a clear regulatory framework for stablecoin issuers, focusing on reserve transparency, redemption rights, and systemic risk mitigation.

Eddid Financial responded swiftly, aligning with leading industry players to explore practical applications of regulated stablecoins in cross-border payments and instant settlement systems. By integrating stablecoins into its operational backbone, the firm aims to reduce settlement times from days to seconds—particularly valuable for international transactions involving institutional clients.

Dr. Yang emphasized:

“Stablecoins are more than just digital cash—they’re the connective tissue between legacy finance and the emerging digital economy. We believe they will be central to globalizing digital finance in a safe and scalable way.”

This vision positions Eddid not just as a participant in the stablecoin revolution, but as an enabler of next-generation financial plumbing.

Pioneering RWA: Bridging Traditional Finance with Blockchain

While many firms focus solely on crypto-native assets, Eddid Financial is looking further ahead—into the realm of Real-World Asset (RWA) tokenization.

RWA involves digitizing tangible assets like real estate, corporate bonds, or private equity stakes on blockchain networks. This process unlocks unprecedented benefits: fractional ownership, 24/7 tradability, automated compliance via smart contracts, and improved liquidity for historically illiquid assets.

Guided by the SFC’s A-S-P-I-Re roadmap and reinforced by the government’s recently released Hong Kong Digital Asset Development Policy Declaration 2.0, Eddid is preparing to launch RWA product distribution and market-making services. These will cover tokenized real estate funds, bond instruments, and other income-generating physical assets.

By combining its proven expertise in digital asset market making with RWA structuring capabilities, Eddid aims to create hybrid investment products that appeal to both conservative and growth-oriented investors.

“The convergence of digital asset market making and RWA services will be a key driver of financial innovation and sustainability,” said Dr. Yang. “It expands investment choices, improves capital efficiency, and strengthens risk management across the board.”

Frequently Asked Questions (FAQ)

Q: What does it mean for a broker to get an SFC license upgrade?
A: An SFC license upgrade allows traditional brokers to legally offer virtual asset services under strict regulatory oversight. It signifies compliance readiness, enhanced investor protection measures, and eligibility to participate in crypto-related financial products like ETFs.

Q: Why are RWAs important for the future of finance?
A: Real-World Assets (RWAs) bring real economic value onto blockchains. They allow everyday assets like property or bonds to be traded digitally with greater transparency and accessibility, potentially democratizing wealth creation and improving global capital flow efficiency.

Q: How do spot crypto ETFs differ from futures-based ones?
A: Spot crypto ETFs hold actual cryptocurrencies like Bitcoin or Ethereum, tracking their real-time market price. Futures-based ETFs rely on derivative contracts, which can deviate from spot prices due to roll costs and market sentiment—making spot ETFs more direct and transparent.

Q: Can individual investors access RWA products through Eddid?
A: While specific offerings are still in development, Eddid plans to provide RWA access to both retail and institutional clients through regulated distribution channels, ensuring compliance while broadening investment options.

Q: What role do stablecoins play in institutional finance?
A: Regulated stablecoins serve as efficient settlement tools, enabling near-instant cross-border payments and reducing counterparty risk. They're increasingly used in treasury operations, trade finance, and programmable finance (DeFi) integrations.

Q: Is Hong Kong becoming a global leader in digital assets?
A: Yes—through proactive regulation like the Stablecoin Ordinance, early adoption of spot crypto ETFs, and strong government support via policy declarations, Hong Kong is positioning itself as Asia’s premier gateway for compliant digital asset innovation.


Looking Ahead: A Global Vision for Digital Finance

Eddid Financial’s journey mirrors Hong Kong’s own ascent in the digital asset arena. As a full-service financial group with deep roots in traditional markets, it is uniquely positioned to bridge old and new financial paradigms.

Going forward, Eddid will continue investing in fintech integration, cross-sector collaboration, and regulatory alignment, all aimed at advancing the interoperability of digital and conventional finance.

Its commitment to responsible innovation—fueled by compliance, technology, and strategic foresight—makes it a key player in Hong Kong’s mission to lead the global digital asset race.

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