The Hong Kong crypto exchange’s token surged after a China-linked brokerage received approval to offer crypto trading in the special administrative region.
Hong Kong-licensed cryptocurrency exchange HashKey’s native token HSK has gained about 90% over the past seven days, per data from CoinGecko. The price surge comes amid reports this week that Guotai Junan International, a Hong Kong-based subsidiary of one of China’s largest brokerages, has received regulatory approval to upgrade its license to offer crypto trading services.
The move makes Guotai Junan one of the first mainland-backed Chinese brokerages in Hong Kong that is licensed to provide crypto trading. According to media reports, Guotai Junan’s clients in Hong Kong can now use the platform to directly trade Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Guotai Junan’s stock is up over 167% in the past five days.
The news has sparked fresh speculation that more traditional financial institutions could be joining Hong Kong’s crypto scene. HashKey — one of the few players fully licensed by the Hong Kong Securities and Futures Commission (SEC) — is set up to be a go-to platform for mainland brokers getting into the game.
Following the Guotai Junan licensing news, between June 24 and June 25, HashKey’s HSK token jumped 80%, reaching $0.83, a price level last seen in March. The token — launched on the Ethereum network and used to pay for fees on HashKey’s trading platform — is currently up about 90% on the week, trading near $0.62 at press time.
Beyond Guotai Junan, rumors circulating on social media suggest that other China-based brokerages like Cathay Securities, Tiger Brokers, and Futu, among others, are also preparing to enter the crypto market, fueling speculation around HashKey’s token.
When contacted for commentary on the developments, a spokesperson for HashKey neither confirmed nor denied these rumors, telling The Defiant:
“HashKey Exchange has partnered with over 30 licensed institutions in Hong Kong through its Omnibus brokerage solution, covering 90% of the licensed securities firms in the region.”
In April, HashKey Capital — the investment arm of parent company HashKey Global — announced the launch of its XRP Tracker Fund, with Ripple as an early investor. According to the investment firm, the fund, designed for institutional investors, is the first in Asia to track Ripple’s XRP.