Citing people familiar with the matter, Bloomberg reported that Hong Kong-licensed crypto exchange operator HashKey Group has confidentially filed an application to list on the Hong Kong Stock Exchange. If approved, the company could go public as early as this year, potentially becoming the first exchange-focused listing under the city’s dedicated crypto oversight framework since OSL Group.
When Circle, the issuer of the USDC stablecoin, listed on June 5, its stock surged 168% on debut and peaked at USD 299 per share on June 23, nearly nine times its USD 31 issue price, before sliding more than 50% from that high. Analysts now suggest Circle’s valuation multiples may be difficult to sustain, signaling that HashKey could face similar challenges as it pursues its own public offering.
Following the IPO report, prices of HSK, HashKey’s platform token, rose. However, the distinction between a platform token and a stablecoin remains significant.
HSK has a fixed supply of one billion tokens, with allocations of 65% for ecosystem growth, 30% for team incentives, and 5% for reserves. It can be used only within the HashKey ecosystem, for paying service fees, rewarding community participation, and unlocking premium features.
Stablecoins, by contrast, are widely interoperable across platforms and used for settlement and cross-border payments, functioning much like cash in traditional finance. HashKey does not issue any stablecoins.
Headquartered in Hong Kong, HashKey describes itself as a Web3 ecosystem builder with operations in Singapore, Japan, and Bermuda. Its businesses span crypto exchange services, Web3 solutions, tokenization, venture capital, asset management, and blockchain infrastructure.
According to RyanBen Capital, Gaorong Ventures invested USD 30 million in HashKey at a pre-money valuation exceeding USD 1 billion.
HashKey Exchange, the company’s flagship platform, is among Hong Kong’s first licensed retail virtual asset trading platforms. It is authorized by the Securities and Futures Commission to conduct securities trading and automated trading services and holds a virtual asset service provider (VASP) license.
These approvals allow HashKey Exchange to offer comprehensive trading services within Hong Kong’s legal framework. For non-professional users, trading is limited to Bitcoin, Ethereum, Solana, Avalanche, and Chainlink, while professional traders have access to a broader range including Ripple’s XRP, among others.
Beyond spot trading, the platform operates an over-the-counter desk with a minimum transaction size of USD 100,000, sourcing liquidity from multiple providers to minimize spreads and slippage.
Outside the exchange, HashKey’s ecosystem spans four divisions:
- HashKey Tokenisation, which provides end-to-end tokenization services.
- HashKey Capital, which invests in blockchain protocols such as Ethereum and Polkadot and manages digital asset funds.
- HashKey Cloud, a blockchain infrastructure provider that supports staking nodes across more than 80 major networks.
- HashKey Chain, designed to bridge traditional finance with Web3.
In June, GF Securities used HashKey Chain to issue Hong Kong’s first tokenized security with daily subscription and redemption.
Expanding industry, elusive profits
In June, Guotai Junan International announced that its subsidiary Guotai Junan Securities had upgraded its trading license to allow virtual asset transactions, triggering a one-day share price jump of 198.39%. Yet 41 other firms—including Victory Securities, Tiger Brokers, Futu Securities, Tianfeng Securities, and Hafoo Securities (a unit of Eastmoney Securities)—have received similar approvals, suggesting that such licenses are no longer rare.
Nor is HashKey the first crypto exchange to seek a Hong Kong listing. OSL Group went public earlier, setting an important precedent. Boosted by regulatory momentum, including the city’s new stablecoin ordinance, OSL’s shares have climbed 178% over the past year to reach a market capitalization of HKD 13.1 billion (USD 1.7 billion) as of October 24, reflecting investor confidence in compliant crypto players.
However, OSL continues to struggle with profitability. Despite revenue growth, it recorded losses between 2018 and 2023, posting a brief profit of HKD 47.7 million (USD 6.1 million) in 2024 before Wind projected a HKD 2.3 million (USD 0.3 million) loss for 2025. Its operating cash flow has also remained negative for two consecutive years.
Global expansion has increased costs. In 2024 alone, OSL acquired Japan’s CoinBest and Italy’s Saintpay, announced plans to buy Canada’s Banxa for up to CAD 85.2 million (USD 60.4 million), and proposed acquiring Indonesia’s Evergreen Crest for USD 15 million. Its headcount has tripled from 167 to 568 employees.
HashKey faces a similar environment. The broader digital asset market remains in a heavy-investment phase, with scalability and profitability yet to be proven. Volatile crypto prices, evolving regulations, and limited trading volumes add uncertainty to its earnings outlook.
If Bitcoin or Ethereum prices fall sharply, exchanges such as OSL and HashKey could see trading volumes decline, eroding revenue and profitability. Meanwhile, larger entrants like JD.com and Ant Group are advancing in tokenization and blockchain infrastructure, leveraging existing e-commerce ecosystems and payment networks. Independent exchanges like HashKey lack such built-in user bases.
To achieve sustainable profitability, HashKey must balance short-term fee income, which fluctuates with market activity, against long-term investment in asset management and infrastructure.
Compliance costs weigh on margins
As of October 13, CoinGecko ranked HashKey Exchange 16th globally, the highest among Hong Kong-licensed platforms.
Its securities trading license helps attract institutions, family offices, and high-net-worth clients who prioritize security and compliance. Yet those regulatory advantages come at a cost. Securing a VASP license reportedly costs HKD 20–50 million (USD 2.6–6.4 million), and license holders must employ at least two responsible officers, each earning roughly HKD 2–5 million (USD 257,270–643,170) per year.
Such requirements significantly increase operating expenses. Retail investors are also restricted to trading only five tokens, while major global exchanges such as Binance, Huobi, and OKX list hundreds. These limits constrain user growth and trading volume, potentially dampening HashKey’s valuation.
Circle’s experience serves as a cautionary example: despite its initial post-IPO surge, its stock later retreated amid concerns over concentrated revenue, rising costs, and earnings volatility.
Still, HashKey’s regulatory compliance could become an advantage as traditional and digital finance continue to converge. The company has expanded into virtual asset exchange-traded funds (ETFs), partnering with Bosera Funds in April to launch spot Bitcoin and Ethereum ETFs, and in August supporting MicroBit’s crypto ETFs as trading platform and sub-custodian.
As Hong Kong’s largest licensed crypto exchange moves toward a potential IPO, HashKey’s listing could serve as a key indicator of investor sentiment and confidence in the city’s regulated digital asset market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Hanyu for 36Kr.