Dmall Digital Intelligence Limited (2586.HK), a retail software services provider, announced on Thursday that it is preparing to apply for a stablecoin license in Hong Kong. The company has already purchased Bitcoin through the licensed digital asset exchange HashKey Exchange, using its existing cash reserves as the funding source.
This strategic move marks Dmall Digital’s formal entry into the Web3 and digital asset ecosystem. The company revealed that it signed a strategic cooperation agreement with HashKey Group in February this year. Under the agreement, Dmall Digital will open a trading account on HashKey Exchange and collaborate closely on key initiatives, including digital asset transactions, Web3 technology development and application, and blockchain ecosystem building. A core objective of the partnership is to explore the launch of technical services involving stablecoin payments and promote the broader adoption of stablecoins in retail payment scenarios.
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Market Reaction and Stock Surge
The announcement triggered a significant market response. On the day of the news, Dmall Digital’s share price surged nearly 90% intraday, closing at HK$11.14—a 23% increase—with trading volume reaching HK$1.8 billion (approximately $230 million). This rally reflects strong investor interest in traditional tech firms expanding into blockchain and digital currency applications.
Despite the recent rebound, the stock remains well below its initial public offering (IPO) price. The company went public at HK$30.21 per share at the end of last year but saw its debut-day valuation plummet by 54% to HK$13.80. Since then, shares dropped as low as HK$4.78 before recovering slightly. As of now, the stock is still down 63% from its IPO level. Its market capitalization has similarly declined from a peak of HK$27 billion on its first trading day to around HK$10 billion today.
Core Business and Customer Concentration
Dmall Digital primarily offers a cloud-based SaaS platform for digital retail operations, serving supermarkets and other brick-and-mortar retailers across China. However, one notable risk factor is its high customer concentration—nearly 90% of its business comes from companies within the Wumart Group, which is controlled by Zhang Wenzhong, the company’s major shareholder.
While this close relationship provides stable revenue streams, it also raises concerns about operational independence and long-term scalability beyond affiliated entities. As Dmall Digital ventures into new domains like blockchain and stablecoins, diversifying its client base will be crucial to building sustainable growth and investor confidence.
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Strategic Rationale Behind Digital Asset Moves
The decision to enter the digital asset space aligns with broader trends in Hong Kong’s fintech evolution. The city has been actively positioning itself as a global Web3 hub, introducing clear regulatory frameworks for virtual assets and stablecoins. By applying for a stablecoin license, Dmall Digital aims to capitalize on these favorable policies and integrate next-generation payment technologies into its retail infrastructure.
Stablecoins—digital currencies pegged to fiat assets like the U.S. dollar or Hong Kong dollar—offer fast, low-cost, and transparent transaction capabilities. For a retail-focused SaaS provider like Dmall Digital, integrating stablecoin payments could enhance cross-border commerce efficiency, reduce settlement times, and open doors to decentralized finance (DeFi) integrations in the future.
Moreover, purchasing Bitcoin signals more than just financial speculation—it reflects a strategic commitment to holding digital assets on balance sheet, potentially improving treasury performance amid macroeconomic uncertainty.
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- Bitcoin purchase
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Frequently Asked Questions (FAQ)
Q: Why is Dmall Digital applying for a stablecoin license?
A: The company aims to integrate stablecoin payments into retail ecosystems, leveraging Hong Kong’s supportive regulatory environment for Web3 innovation and digital finance.
Q: Where did Dmall Digital buy Bitcoin?
A: Through HashKey Exchange, a regulated digital asset trading platform licensed in Hong Kong.
Q: Is Dmall Digital developing its own stablecoin?
A: While not explicitly confirmed, applying for a stablecoin license suggests plans to issue or operate a regulated digital currency, likely tied to retail payment use cases.
Q: How might stablecoins benefit retailers?
A: Stablecoins enable faster settlements, lower transaction fees, and improved transparency—especially valuable in cross-border supply chains and loyalty programs.
Q: What risks does Dmall Digital face in this transition?
A: Regulatory uncertainty outside Hong Kong, technological integration challenges, and reliance on a single major shareholder remain key concerns.
Q: Could this move attract more institutional investors?
A: Yes—engagement with regulated digital assets may increase appeal among forward-looking funds focused on fintech and blockchain-enabled businesses.
Broader Context: Hong Kong’s Rising Role in Global IPOs
Dmall Digital’s pivot occurs against a backdrop of Hong Kong reemerging as a premier destination for listings. In the first half of 2025 alone, 44 companies listed on the Hong Kong Stock Exchange, raising $13.6 billion—accounting for 25% of global IPO proceeds during the period. This surge is driven by Chinese firms avoiding U.S. listings due to geopolitical tensions and data security concerns, coupled with tightened A-share issuance controls.
Companies like NIO-backed Neta Auto, Chagee (CHA.US), and Zijin Mining have all chosen Hong Kong for listings or dual-primary listings (A+H), signaling growing confidence in the city’s financial infrastructure—including its evolving crypto regulations.
As Hong Kong rolls out initiatives such as the 18C listing channel for special-purpose tech firms and clearer stablecoin rules expected later in 2025, traditional tech players like Dmall Digital are well-positioned to lead the convergence of legacy industries with blockchain innovation.
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Final Outlook
Dmall Digital’s move into digital assets represents a bold step toward future-proofing its retail SaaS model. By pursuing a Hong Kong stablecoin license and making strategic Bitcoin investments, the company positions itself at the intersection of fintech and Web3—a space increasingly vital for next-generation commerce platforms.
While challenges around customer concentration and unproven revenue diversification persist, the recent market enthusiasm underscores belief in its transformation potential. If executed effectively, this strategy could redefine how traditional retail technology companies harness blockchain for scalable, secure, and innovative payment solutions.
With strong tailwinds from Hong Kong’s pro-innovation regulatory stance and rising institutional interest in tokenized assets, Dmall Digital’s journey may serve as a blueprint for other enterprise tech firms navigating the digital economy shift.