How should the business of compliant exchanges be conducted?
According to data, in 2024, Coinbase:
The total number of users is 105 million, with about 55% from the United States.
Institutional clients contribute 82.05% of the total trading volume, while retail users account for only 17.95%.
By currency, Bitcoin and Ethereum account for 44% of the trading volume.
Summary: Mainly serves U.S. users, institutions account for a large portion of trading volume, and mainstream coins remain the primary trading assets on the platform.
In contrast, Hashkey Exchange, which is also a compliant exchange with a strong background, has encountered several difficulties, including:
Market limitations: HashKey mainly serves local users in Hong Kong, with limited market capacity.
Globalization attempts: In 2024, HashKey Global was launched to expand into international markets, but it started late and faces fierce competition from established platforms like Coinbase and Binance.
Limited scope of services: Due to stringent compliance requirements, HashKey's products and services are highly targeted but have a narrow coverage.
Highlights: OTC Business
HashKey's over-the-counter (OTC) business has performed exceptionally well, supporting seamless trading of over 10 fiat currencies and more than 60 cryptocurrencies, with trading volume exceeding $5 billion in 2024, becoming its pillar revenue source.
The risk of a single business line lies in an unbalanced revenue structure. Can HashKey explore diversified business models to achieve long-term growth? Currently, there is indeed potential.
On May 7, 2025, Futu Securities International officially launched Bitcoin, Ethereum, and USDT deposit services, supporting cryptocurrency trading services for compliant investors;
On June 24, 2025, Guotai Junan International officially received approval from the Hong Kong Securities and Futures Commission to provide virtual asset trading services.
According to reports, both Guotai Junan and Futu are adopting a broker-intermediary model to enter the cryptocurrency market, with the underlying technology supported by HashKey. This means that the two platforms do not directly develop cryptocurrency trading platforms but act as intermediaries, providing trading services for cryptocurrencies based on existing platforms and interfaces.
In fact, the two brokerages have become HashKey’s “distributors,” as Guotai Junan and Futu hold VASP licenses, while only HashKey has a VATP license. The underlying liquidity of VASP relies on VATP support, so the trades of users on their platforms will ultimately flow to HashKey.
The explosive point is:
Currently, multiple brokerages are striving to complete license upgrades to enter the cryptocurrency trading market. Their operating model is also a non-self-operated “distribution-style” exchange, while HashKey, in terms of technical strength, compliance, and brand power, is far ahead in this market, possessing sufficient core competitiveness in the B-end, and it could very well become the underlying platform for institutions entering the cryptocurrency market in the future.
Domestic brokerages and institutions entering the cryptocurrency market will in fact become distribution platforms for Hashkey. Additionally, the “cross-border payment link” from Hong Kong to the mainland has officially launched, releasing positive signals from the policy level. No wonder $HSK rose 160% in one week.
