Traditional finance is making a high-profile entry, bringing new liquidity to the crypto market.
Today, a significant piece of news arrives from Hong Kong's financial market: Guotai Junan International has officially obtained approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to a virtual asset trading service license. This means that soon, clients will be able to trade mainstream cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins like USDT and Tether, directly on the platform of Guotai Junan International.
Guotai Junan International is not just testing the waters but is fully entering the crypto field. It has become the first Chinese broker in Hong Kong to provide 'comprehensive virtual asset services', covering three core areas: virtual asset trading execution, trading consulting services, and the issuance and distribution of virtual asset-related products. This marks the integration of traditional brokers and crypto assets entering a deep-water zone.
01 Behind the license upgrade, Guotai Junan's crypto layout is by no means a day’s work.
Guotai Junan International's layout in the virtual asset field has long been quietly unfolding, advancing step by step:
January 2024: First to launch structured products based on virtual asset spot ETFs in Hong Kong.
April 2024: Expanding into the issuance and distribution of virtual asset-related products, covering over-the-counter derivatives.
December 2024: Approved to conduct virtual asset trading platform introduction agent business.
April 2025: Launching digital bond issuance business.
May 2025: Approved to distribute tokenized securities and provide related consulting.
June 2025: The ultimate puzzle piece is in place – obtaining the virtual asset trading service license.
This series of actions shows that Guotai Junan International is not merely following trends but is systematically constructing a virtual asset ecosystem, backed by a precise grasp of compliance and market timing.
The deeper background of the license upgrade is the clarification of Hong Kong's regulatory framework. In February this year, the Hong Kong Securities and Futures Commission released the 'A-S-P-I-Re Roadmap' for virtual asset market regulation, pointing the direction for industry development. Guotai Junan International's compliance advancement is highly synchronized with policy rhythm, reflecting its keen perception of regulatory pulse.
02 The first issuance by Chinese brokers carries significance beyond the event itself.
Guotai Junan International's approval this time has shaken the market, crucially due to its identity as the 'first Chinese broker in Hong Kong'. The issuance of a virtual asset trading service license to an institution with a Chinese background conveys an undeniable policy direction.
It validates the substantial advancement of Hong Kong's positioning as an 'international virtual asset center'. When traditional large brokers, especially those backed by mainland financial groups, participate deeply, the compliance and mainstreaming of crypto assets have become irreversible.
For traditional investors, the trust threshold has been significantly lowered. Trading Bitcoin on platforms like Guotai Junan International, which are subject to strict regulation, feels much closer than opening an account on Binance or OKX. This move may attract a large number of waiting traditional funds into the market, injecting new liquidity.
The demonstration effect of Chinese brokers may prompt peers to follow suit quickly. After Guotai Junan International takes the lead, other Chinese and international brokers in Hong Kong are likely to accelerate their applications for similar licenses, forming a service cluster effect that further strengthens Hong Kong's status in crypto finance.
03 Insights on the influence of the crypto circle: a comprehensive upgrade from traffic to structure.
The entry of Guotai Junan International will have a multi-layered and far-reaching impact on the crypto market:
The channel for incremental funds has been opened: traditional stock investors can allocate crypto assets within the same account at the broker, greatly shortening the operational path. Especially for high-net-worth clients and institutional investors, they can enter the market compliantly through familiar and trusted broker channels, without needing to learn the operation of trading platforms or bear platform risks.
Product forms will accelerate innovation: Due to the Guotai Junan license covering 'issuance and distribution of over-the-counter derivatives', complex products such as structured notes, options combinations, and income certificates linked to virtual assets may emerge in the future. This will meet the needs of funds with different risk preferences and enhance market depth.
The pricing power landscape may change: traditional financial institutions are entering with large funds, and their trading logic may influence the price fluctuation patterns of cryptocurrencies. The rise in institutional pricing discourse power may lead to changes in market volatility structure.
Cross-market connectivity enhanced: When the same platform can trade stocks, bonds, derivatives, and cryptocurrencies, the flexibility of asset allocation will undergo a qualitative change. Investors can conveniently execute 'stock-crypto' rotation strategies and even develop cross-market arbitrage models to enhance capital efficiency.
04 A calm perspective: Risk awareness must not be lost amidst the revelry.
While embracing the good news, we must maintain a clear awareness:
Hong Kong licenses do not mean that mainland policies are relaxed; the ban on cryptocurrency trading within China remains strict.
The entry of traditional brokers may exacerbate market volatility, and initial liquidity shocks should not be underestimated.
The diversification of virtual asset derivatives also means a more complex risk transmission chain, necessitating vigilance against tail risk accumulation.
Technical security and custody risk remain key challenges for institutional services.
Investors should adhere to the principles of 'compliant channels, moderate allocation, and risk isolation' to avoid blindly leveraging to chase gains. True opportunities belong to those who are rational and perceptive.
With the deep entry of traditional brokers like Guotai Junan International, crypto assets have transformed from geek experiments into an important piece of the global financial allocation puzzle. Hong Kong is advancing its blueprint for an international virtual asset center, and the license upgrade of Guotai Junan International adds a crucial piece to this picture.
When Bitcoin appears in the accounts of clients of Chinese brokers, the blockchain revolution has quietly turned the page from the wilderness chapter, entering a new financial era. The train of integration between traditional finance and the crypto world has already started; are you ready to get on board?
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