HashKey releases the PRO version, partnering with ZhongAn Bank and other institutions to enter the market rapidly

Author: Web3Husky

As the price of Bitcoin is about to break the $100,000 mark, the Hong Kong crypto market is also witnessing several historic milestones. Last year, when people thought of the relationship between Hong Kong banks and cryptocurrencies, they often associated it with issues like "difficulty in opening accounts" and "channels not being established."

But just a year later, banks not only support deposits and withdrawals in collaboration with compliant exchanges but also "personally step in" to open up virtual asset trading channels. This is a significant leap forward and gives us a glimpse into the booming development of the Web3 industry in Hong Kong.

Today, HashKey Exchange, Hong Kong's largest licensed virtual asset exchange, announced the launch of HashKey Pro, assisting ZA Bank in becoming the first bank in Asia to offer retail virtual currency trading. This move, through the deep integration of virtual banking and the virtual asset ecosystem, will trigger a "herding effect" in Hong Kong's virtual asset market—by linking virtual banks, brokerages, and other institutions, it will continuously inject liquidity and trust into the Hong Kong virtual asset market. This model will provide a new paradigm for the reshaping of virtual asset industry rules and ecological development, helping Hong Kong secure an important position in the global virtual asset market landscape.

From "Indirect Channels" to "Direct Channels," a "Giant Leap" from Traditional Finance to Virtual Currency

The entry of traditional financial institutions has long ceased to be news.

As early as 2021, over 55% of the world's top 100 banks had ventured into virtual asset businesses, including Bitcoin trading, custody services, and portfolio optimization. JPMorgan's Onyx digital asset platform has processed over $50 billion in digital asset transactions; Goldman Sachs saw a 42% year-on-year increase in virtual asset trading volume in the first quarter of 2024, further attracting the attention of institutional investors.

Hong Kong is also closely following international crypto trends, continuously optimizing regulatory policies. The implementation of the Virtual Asset Service Provider (VASP) regulations and the upgrade of the Type 9 financial license mark Hong Kong's unique balance between compliance and innovation, providing a clear legal framework for the development of the virtual asset industry. Under this policy guidance, traditional financial institutions in Hong Kong are actively expanding their virtual asset businesses. Traditional brokerages like Tiger Brokers and Victory Securities are among the first to offer virtual asset investment services to professional investors; Hang Seng Bank and HSBC are exploring virtual asset custody functions.

However, it must be noted that traditional financial institutions often rely on indirect methods such as ETFs to provide services when exploring this emerging field. In the early stages, this model can open the door to the virtual asset market for institutional clients, but as the market develops, its limitations become increasingly apparent. High management fees, trading latency, and insufficient control over user assets are some of the drawbacks that make this approach difficult to meet the increasingly complex market demands. Additionally, other traditional virtual asset services like custody and transaction matching, while emphasizing security and compliance, struggle to meet institutional clients' higher demands for efficiency and flexibility.

HashKey Pro, launched by HashKey Exchange, provides an efficient "direct channel" for financial participants such as virtual banks, brokerages, and payment institutions.

Through HashKey Pro, financial institutions can complete user asset custody, trading, and clearing with just one click via the licensed exchange HashKey Exchange, without the need to redevelop complex systems.

The feasibility of this solution has been fully validated in the collaboration between HashKey Exchange and ZA Bank. As Asia's first virtual bank to offer retail virtual asset trading services, ZA Bank successfully launched Bitcoin and Ethereum trading functions within its app, achieving seamless conversion with fiat currency, thanks to HashKey Pro. This collaboration not only expands ZA Bank's digital financial service boundaries but also gives it a head start in the virtual asset market.

Meanwhile, HashKey Pro has also demonstrated its broader applicability in the brokerage sector. Hong Kong brokerages such as Victory Securities and Adept Securities are directly connecting to the virtual asset market through HashKey Pro, providing efficient trading solutions for high-net-worth clients and institutional users.

Linking millions of financial users, the "Herding Effect" of HashKey Pro has begun.

The roles of traditional financial institutions such as virtual banks and brokerages are undergoing profound changes. The core significance of HashKey Pro lies not only in being a direct channel but also in helping to link traditional financial institutions with the virtual asset market. Through standardized technology and modular services, it enables virtual banks, brokerages, and payment institutions to quickly integrate virtual asset trading services, allowing these institutions to participate in this emerging market with lower technical and compliance costs. This involves not only the 4 million stock investors in Hong Kong but also tens of millions of people trading in banks.

Currently, HashKey Pro has established partnerships with over ten traditional financial institutions, including ZA Bank, Victory Securities, and Adept Securities. The "Herding Effect" of HashKey Pro is reflected not only in the scale of cooperating institutions but also in its profound impact on the market. With each new institution joining, market liquidity continues to grow, and the demonstration effect will attract more traditional financial institutions to overcome technical and compliance barriers, accelerating their entry into the virtual asset field. This virtuous cycle will effectively break down the barriers between traditional financial institutions and the virtual asset industry, promoting their deep integration and accelerating Hong Kong's financial development and status enhancement.

This synergistic effect has transcended the local Hong Kong market, making it a benchmark for financial institutions in other regions.

From initially providing users with simple fiat deposit and withdrawal services to now directly entering the virtual asset trading field, they are transforming from market supporters to deep participants. Success stories from institutions like ZA Bank and Victory Securities indicate that the boundaries between traditional finance and the virtual asset market are gradually blurring, and this transformation is reshaping the entire industry's ecosystem.

In fact, this trend is not unique to Hong Kong. Globally, traditional financial institutions represented by banks are driving similar development paths through technological innovation. Europe's Revolut has attracted a large number of users and rapidly expanded its market share by simplifying user experience and introducing one-stop virtual asset trading functions; South Korea's KakaoBank has built a complete digital financial service chain by integrating loan, payment, and virtual asset trading services. These cases show that traditional financial institutions are increasingly recognizing that improving the virtual asset service chain will be a key strategy for retaining users in the future.

In this context, Hong Kong's practices are particularly exemplary. Compared to other regions that treat virtual asset services as a single additional function, Hong Kong is forming a comprehensive industry connection centered around virtual asset exchanges, radiating to traditional financial institutions. Behind this transformation is Hong Kong's comprehensive exploration of the virtual asset compliance system: HashKey Exchange, as a licensed virtual asset exchange, provides safe, transparent, and standardized service pathways for cooperating institutions by strictly adhering to the regulatory requirements of the Securities and Futures Commission (SFC); traditional financial institutions, through HashKey Pro, not only reduce the technical and compliance costs of entering the virtual asset market but also provide trust guarantees for entering this emerging field.

By connecting the industry around virtual asset exchanges, Hong Kong can not only consolidate its position as a global leader in the virtual asset market but also provide a feasible path for traditional financial institutions to explore digital transformation. This industry collaboration will drive the virtual asset market from regional practices to global consensus, injecting new momentum into the long-term healthy development of the industry. In this, HashKey Pro, as a core solution, is changing the rules of participation in the virtual asset market—whoever can quickly open up virtual asset trading channels in an increasingly changing financial world will seize the initiative in the next wave of digital revolution.