Cathay United Securities International Breaks Ground: First Chinese-Funded Broker Enters Hong Kong Crypto Market

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The financial world is witnessing a pivotal shift as Cathay United Securities International becomes the first mainland-backed securities firm in Hong Kong to obtain full-service virtual asset trading capabilities. On June 24, the company officially received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities trading license, enabling it to offer virtual asset trading services and professional advisory services for digital assets.

This landmark development allows clients to directly trade major cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like Tether (USDT), all within a regulated, trusted financial platform. The move marks a major milestone in the convergence of traditional finance and digital assets, signaling growing institutional acceptance and regulatory maturity in Asia’s financial hub.

Following the announcement, Cathay United Securities International’s stock surged over 80% at market open on June 25, closing with an extraordinary gain of 198.39%—a clear reflection of investor confidence in this strategic leap forward.

A Strategic Move Aligned with Hong Kong’s Virtual Asset Vision

Cathay United’s breakthrough didn’t happen overnight. It is the result of a deliberate, phased strategy that aligns perfectly with Hong Kong’s ambition to become a global virtual asset hub.

After adopting a cautious stance toward crypto regulation since 2017, Hong Kong shifted gears in 2022 with the release of the Hong Kong Virtual Asset Development Policy Statement by the Financial Services and the Treasury Bureau. This declaration set a bold vision: to establish Hong Kong as Asia’s leading center for digital asset innovation.

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Since then, the city has rolled out a series of progressive policies, including the A-S-P-I-Re regulatory roadmap (Asset-Service-Platform-Infrastructure-Regulation) launched in February 2025 and the Stablecoin Bill passed in May 2025. These frameworks provide clear compliance pathways for financial institutions while safeguarding investor interests—striking a balance between innovation and risk management.

Cathay United Securities International has been at the forefront of this transformation:

This step-by-step expansion mirrors the SFC’s regulatory framework and demonstrates a commitment to building a secure, compliant, and integrated financial ecosystem.

Bridging Traditional Finance and Digital Assets

One of the most significant implications of Cathay United’s new license is the elimination of the barrier between traditional brokerage accounts and crypto trading. Previously, investors had to juggle multiple platforms—regulated brokers for stocks and unregulated exchanges for crypto—increasing complexity and compliance risks.

Now, clients can access both conventional securities and digital assets through a single, regulated interface. This seamless integration enhances user experience, improves security, and brings much-needed legitimacy to cryptocurrency investing.

Moreover, Cathay United’s successful issuance of a $150 million tokenized bond for a state-owned enterprise showcases real-world applications of blockchain in capital markets. By converting traditional financial instruments into on-chain tokens, the firm is pioneering securities tokenization—a critical bridge between legacy finance and decentralized ecosystems.

Industry-Wide Impact: Catalyst for Broader Institutional Adoption

Cathay United’s achievement is more than a corporate milestone—it’s an industry game-changer.

Analysts predict that other major Chinese-funded financial institutions with international operations will follow suit. As noted by Huachuang Non-Bank Financial Research, “More brokers are expected to upgrade their Type 1 licenses to include virtual asset services,” accelerating institutional participation in Hong Kong’s growing digital asset market.

This shift could significantly boost market liquidity and credibility, especially as high-trust players enter the space. The ripple effects are already visible: on June 25, mainland financial markets reacted strongly:

Key Beneficiaries Across the Virtual Asset Ecosystem

1. Brokerage Firms

Cathay United sets a precedent for A-share brokers looking to expand into digital assets. Firms with strong compliance frameworks and international presence are best positioned to replicate this model.

2. Blockchain & Cybersecurity Providers

As transaction volumes grow, so does the demand for secure infrastructure:

3. Hardware & Chip Manufacturers

Physical security remains vital in crypto custody:

4. Fintech & Payment Infrastructure

Companies enabling backend systems for digital asset integration:

5. Blockchain Application Developers

Firms leveraging distributed ledger technology for enterprise use:

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FAQs: Understanding the Bigger Picture

Q: What does this mean for retail investors?
A: Investors now have access to regulated crypto trading through a trusted financial institution. This reduces counterparty risk, improves transparency, and simplifies tax reporting compared to using offshore exchanges.

Q: Is this only about Bitcoin and Ethereum?
A: Initially, yes—mainstream cryptocurrencies like BTC and ETH will be available. However, the license also covers stablecoins like USDT and future tokenized assets such as digital bonds or equity tokens.

Q: Could this influence mainland China’s stance on crypto?
A: While mainland China maintains strict controls on cryptocurrency trading, Hong Kong operates under “One Country, Two Systems.” This move serves as a controlled experiment that may inform future cross-border financial integration strategies.

Q: How does this affect global crypto markets?
A: It strengthens Hong Kong’s position as a gateway between East and West in digital finance. Institutional-grade custody, compliance, and liquidity could attract global capital seeking Asia-based crypto exposure.

Q: Are there risks involved?
A: Yes—market volatility, cybersecurity threats, and regulatory changes remain concerns. However, operating under SFC oversight ensures stricter risk controls than many standalone crypto exchanges.

The Road Ahead: Toward a Tokenized Financial Future

Cathay United Securities International’s journey reflects a broader trend: the convergence of traditional finance and blockchain-based assets. As regulatory clarity improves and infrastructure matures, we’re moving toward a future where:

This transformation positions Hong Kong to become a global liquidity hub for virtual assets, reinforcing its status as an international financial center.

For mainland financial institutions, Cathay United’s success offers a blueprint for safe, compliant entry into digital finance. For investors, it opens new avenues for portfolio diversification under regulated conditions.

Final Thoughts: A New Chapter in Financial Innovation

The approval of Cathay United Securities International’s virtual asset license is more than a corporate win—it’s a symbol of evolving financial paradigms. It underscores that digital assets are no longer fringe experiments but integral components of modern capital markets.

With clearer regulations, advancing technology, and growing institutional adoption, the fusion of traditional finance and crypto is inevitable. And as pioneers like Cathay United lead the way, the entire financial landscape—from brokers to tech providers—is being reshaped.

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As Hong Kong continues to build its virtual asset ecosystem, one thing is certain: the future of finance is digital, inclusive, and increasingly interconnected.