Hashkey Group Launches Wealth Management Service to Target Institutional Investors and Family Offices

On Apr 15, 2023

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Digital asset financial services firm Hashkey Group has announced the launch of its new wealth management service, Hashkey Wealth, as part of its plan to expand its reach among professional and accredited investors.

The company will target institutions and family offices, seeking to tap into the substantial demand from such investors for digital assets.

Hashkey Group Introduces Wealth Management Service

According to a 2022 report by Boston Consulting Group, only a small fraction of individual wealth is invested in cryptocurrencies, indicating that there may be substantial room for growth in the crypto exposure of this sector.

Hashkey has enhanced its over-the-counter (OTC) service, which has expanded liquidity coverage and a wider range of tokens in the spot market to further enhance its offering for professional investors. The firm has also received approval from Hong Kong’s Securities and Futures Commission (SFC) to manage portfolios 100% invested in crypto after obtaining a Type 9 asset management license.

Hashkey Group plans to offer a range of investment products, including digital assets, as well as portfolio management services and investment advice through its new wealth management arm.

The company’s goal is to tap into the increasing interest in cryptocurrencies among institutional and accredited investors who are looking to diversify their portfolios and take advantage of the potential of digital assets.

The expansion of Hashkey’s OTC service and its focus on institutional investors and family offices is a sign of the increasing importance of the institutional investor market in the cryptocurrency industry. As more institutional investors enter the space, companies like Hashkey are seeking to provide a range of services that meet their specific needs.

The approval of Hashkey’s Type 9 asset management license by the SFC is a significant milestone for the firm, as it allows it to manage portfolios fully invested in cryptocurrencies. This license will help the firm attract more institutional investors who are seeking exposure to the crypto market while also benefiting from professional portfolio management services.

Hashkey’s launch of a new wealth management arm and the expansion of its OTC service, along with its recent approval for its asset management license, demonstrate the firm’s commitment to expanding its appeal to professional and individual investors in the cryptocurrency industry.

The firm is well-positioned to capitalize on the growing interest in digital assets among institutional investors and family offices, and its expansion is a positive sign for the future growth of the crypto market.

HashKey Group Announces Launch of Regulated Exchange HashKey PRO

HashKey Group has announced the upcoming launch of HashKey PRO, a regulated exchange that will provide a secure platform for clients to trade virtual assets.

The exchange has received regulatory approval from the Securities and Futures Commission of Hong Kong and has been granted a Type 1 license (Dealing in securities) and a Type 7 license (Providing automated trading services).

HashKey PRO will strive to set the standard for compliance, safety, and security and has implemented a number of measures to protect client funds, including segregated accounts and comprehensive insurance coverage.

HashKey PRO is also ISO 27001 (Information Security) and ISO 27701 (Data Privacy) certified, ensuring a high level of security and reliability for clients. In addition to fiat on- and off-ramp support, HashKey PRO offers fiat trading pairs such as BTC/USD, ETH/USD, and USDT/USD, with plans to expand its offerings in the future.

Initially, the exchange will only be open to professional investors subject to onboarding and know-your-client requirements, with plans to welcome retail users in the coming months.

HashKey PRO is currently operating on Hong Kong business days from 9 am to 5 pm and will expand to a 24/7 operation at launch. The exchange will feature some of the most liquid virtual assets and fiat trading pairs, with plans to add more upon meeting the token admission requirements set out by the SFC.

HashKey Group is co-hosting the 2023 Hong Kong Web3 Festival and has set up a booth for HashKey PRO at the event.

While the SFC has indicated that licensed exchanges may be allowed to serve retail investors in the future, the investor protection measures under which these services could be offered are not yet set. As a result, HashKey PRO will initially only serve professional investors.

Crypto Industry Struggles To Acquire Banking Partnerships

While traditional companies introduce their crypto lineups to be more inclusive. The cryptocurrency industry is currently facing a major challenge in its attempts to secure reliable banking partnerships, with several crypto-friendly banks having recently closed their doors to certain companies.

This development has caused alarm among US stakeholders and market participants and could hurt the industry’s ability to grow and innovate in the future. Many experts believe that these actions are part of a larger plan to restrict banking partnerships in the cryptocurrency industry, and have dubbed it “Operation Choke Point 2.0.”

The industry has constantly faced opposition from regulators, who see decentralization as a possible danger to the financial system. Nevertheless, certain individuals in the industry, like Vadim Yarmak, who serves as the CEO of PRMR, a blockchain marketing firm, maintain that regulators recognize the permanence of digital currency and that no level of compulsion or unclear legal jargon can eliminate it.

Binance, the biggest crypto exchange in the world, has been affected by regulatory actions, as its US division has faced challenges in finding trustworthy banking partners for fiat on-ramps since Signature Bank’s closure. As a result, certain USD deposit services have been suspended.

The industry is actively seeking new ways to address these obstacles, with one potential approach being the establishment of constructive communication between regulators and industry players.

Through such dialogue, the industry could showcase the value and potential of digital currencies, potentially earning the trust and support of regulators and paving the way for more favorable regulatory policies.