Yield App: “HashKey shows Hong Kong is a real crypto contender”
Tim Frost, CEO of digital wealth platform Yield App, says:
“The launch of HashKey Capital’s $100 million Digital Asset Fund in Hong Kong shows how it’s possible to take crypto legislation from concept to reality. Coming at a time when the US – commonly regarded as the world’s leading crypto hub – finds itself navigating a regulatory gray area, Hong Kong is providing a template for how jurisdictions can move forward into this new asset class.
Since the city’s remarkable U-turn on crypto this year, both OSL and HashKey were among the first platforms to be granted permission to begin taking on retail users. HashKey’s new fund, which launched last Friday, is mainly backed by high-net-worth individuals and family offices. It is, though, highly diversified with altcoins – with bitcoin and ether making up less than half of its investments. This suggests a strong appetite for exposure to the entire crypto ecosystem.
Currently, it seems the most exciting developments in crypto are coming from Asia – specifically Hong Kong – rather than from the US. Indeed, the world’s largest cryptocurrency exchange – Binance – is now encouraging its users to swap their BUSD stablecoins with FDUSD. Launched in a debut listing on Binance last month, FDUSD is a 1:1 USD-backed stablecoin from Hong Kong-based trust company First Digital Group.
Overall, the new crypto regime in Hong Kong represents a major step forward – even if it took a legislation U-turn for it to happen. As we see the city’s first licenses emerge, it is clear that Hong Kong has laid down a clear blueprint for the digital asset industry. This could make the city fertile ground for both emerging start-ups and established exchanges.
Indeed, just last week Hong Kong’s Financial Secretary Paul Chan Mo-po stated that the city shouldn’t “waste any time” to seize the opportunities offered by blockchain technology. And, with a $50 million injection from the government to support the industry’s advancement, this budding crypto hub is positioning itself as a serious contender in the digital asset market.”