Detailed explanation of HK's first crypto asset company: the pioneer who took the first bite of the crab

On December 1, 2025, the licensed digital asset trading platform HashKey in Hong Kong passed the HKEX hearing and disclosed the post-hearing documentation, just one step away from becoming the “First Listed Crypto Compliance Stock” in Hong Kong. The IPO is jointly sponsored by J.P. Morgan, Guotai Huarong Securities, and Guotai Junan International. Its prospectus not only showcases the growth trajectory of regional crypto platforms but also reflects deep changes in the global digital asset market—shifting from unregulated growth to compliance competition, from retail dominance to institutional entry. The industry is standing at a new crossroads.

As Asia’s first crypto trading platform holding a comprehensive license from the Hong Kong Securities and Futures Commission (SFC), HashKey’s business data, financial performance, and ownership structure serve as important samples for understanding the current crypto market. This article will analyze key information from the prospectus, decipher macro-market characteristics, predict future industry trends, and reveal hidden opportunities and risks.

1. Three Macro Characteristics of the Crypto Market from HashKey Data

HashKey’s prospectus covers the full scope of operations from 2022 to the first half of 2025. Every set of data—from trading volume, user structure to revenue composition—corresponds to profound changes in the crypto market.

1. Compliance as a Regional Barrier, Global Pattern Showing “Head Monopoly + Regional Segregation”

With regulatory policies implemented in various countries, compliance credentials have become core competitive barriers for platforms. As one of the first Hong Kong-licensed virtual asset trading platforms (VDTA), HashKey quickly captured regional markets leveraging its compliance advantages. The prospectus shows that in 2024, its market share in Hong Kong’s crypto trading sector exceeded 75%, making it the largest local crypto asset platform and also the biggest regional onshore platform in Asia. Its digital asset exchange facilitated a total spot trading volume of HKD 1.3 trillion, with trading volume soaring from HKD 4.2 billion in 2022 to HKD 638.4 billion in 2024—a growth of over 150 times in three years, confirming the explosive potential of compliant platforms within regulated regions.

However, from a global perspective, the gap between regional compliant platforms and traditional leading exchanges remains vast. In the first half of 2025, HashKey’s institutional clients had an average monthly trading volume of HKD 24.3 billion, and retail clients HKD 5.16 billion, still lagging behind global giants like Binance and OKX by orders of magnitude. This “regional monopoly, global weakness” pattern reflects that the crypto market has entered an “era of compliance-based segmentation.” Regional compliant platforms hold advantages locally, but in terms of global capital attraction and user base, they cannot yet challenge the dominance of traditional top-tier platforms. This pattern exemplifies that the crypto industry is moving into a “regulatory-based segregated era.”

2. Revenue Dependence on Trading Business, Market Cycle Risks Highlighted

Although HashKey has built three main business segments—“trade facilitation + on-chain services + asset management”—its revenue structure remains highly dependent on trading activities. In the first half of 2025, trading facilitation services accounted for 68% of revenue, and this segment has turned profitable—shifting from a loss of HKD 14.915 million in 2022 to a profit of HKD 518 million in 2024.

However, this reliance makes its performance deeply tied to market cycles. During the 2024 bull market, revenues surged by 247% year-over-year; in the low market in the first half of 2025, trading volume plummeted from HKD 347.6 billion to HKD 214.1 billion—down 26% year-over-year. More notably, retail clients are highly sensitive: their average monthly trading volume in the first half of 2025 dropped from HKD 35.936 billion to HKD 5.16 billion—an over 85% decline—while institutional clients’ monthly trading volume increased from HKD 21.978 billion to HKD 24.304 billion, acting as a “stabilizer” amid market volatility. This reveals retail investors as “amplifiers” of market sentiment: during bull markets, they rush in, but during bear markets, they exit quickly, posing a “dependence on external factors” risk for platforms.

3. Institutionalization Deepening, Pledge and RWA as New Growth Engines

The crypto market is accelerating from “retail-led” to “institution-driven.” HashKey’s user data clearly shows this shift: institutional monthly trading clients increased from 31 in 2022 to 273 in the first half of 2025; Omnibus clients (accessed via partners) expanded from 1 in mid-2024 to 8; institutional trading volume accounted for 68% in the first half of 2025.

Meanwhile, institutional demand is driving market transformation from “trade-driven” to “service-driven,” with pledge and Real-World Asset (RWA) tokenization becoming new growth engines. As of September 2025, HashKey’s pledged assets reached HKD 29 billion, ranking first in Asia and eighth globally in pledged services; its self-developed HashKey Chain has issued HKD 1.7 billion worth of RWA tokens across sectors like real estate and supply chain finance. Pledge services provide stable passive income, crucial during bear markets; RWA connects traditional finance with crypto ecosystems, opening new market opportunities.

2. Four Future Trends in the Crypto Market

Based on features revealed in HashKey’s prospectus, combined with global regulatory and technological trends, four key predictions about the future of the crypto industry can be made.

1. Irreversible Trend Toward Compliance, Regulatory Differences Intensify Market Segmentation

HashKey’s rise proves that compliance is a “moat” for industry long-term development. The global crypto compliance process will accelerate, with more countries and regions adopting Hong Kong’s regulatory model and establishing clear frameworks. Small, non-compliant platforms will gradually be eliminated, while regions like Hong Kong and Singapore with clear regulations are poised to become regional crypto hubs.

However, regulatory policy differences will further deepen market segmentation. Recently, China’s central bank reiterated bans on virtual currency speculation and trading, restricting mainland Chinese clients; the U.S. SEC continues to tighten oversight of crypto platforms; and the EU’s MiCA regulations have come into force. These disparities may increase operational risks for cross-region business.

2. Business Diversification is Key to Breaking the Bottleneck; RWA and Pledge Lead New Growth

Currently, many crypto platforms face a revenue structure heavily reliant on trading commissions. HashKey’s trading commissions still constitute a significant part of its income. This model benefits from bullish markets but struggles during downturns. Future industry competition will shift from “volume battles” to “business diversification battles.”

From HashKey’s layout, RWA and pledge services are the most promising directions. RWA tokenizes traditional assets, reducing investment barriers and increasing liquidity. It’s predicted that by 2028, the global RWA market could surpass USD 10 trillion, becoming the largest growth segment. Pledge services act as “stabilizers” in bear markets; in the first half of 2025, even as trading volume declined, pledged assets continued to grow. Platforms offering high-security, high-yield pledge products will have a competitive advantage.

3. Institutionalization Will Continue to Deepen; Retail Market Needs Ecosystem Innovation

Institutional clients are now the dominant force and this trend will persist. Future platforms will launch more tailored custody services, large-scale trading algorithms, and richer derivatives to meet institutional risk management needs.

In contrast, retail market transformation faces challenges. HashKey’s registered users reached 1.4469 million by June 2025, but only 138,500 had assets, and active traders accounted for less than 10%. The main reasons are high product thresholds and limited use cases. Retail market breakthroughs require ecosystem innovation.

4. Three Risks to Watch: Price Volatility, Regulation, and Platform Operations

Despite positive trends, multiple risks remain. First, price volatility—cryptocurrencies still carry speculative attributes; investors need to remain rational about returns and risks. Second, regulatory risks—regulation rules are rapidly evolving worldwide, and tightening policies could constrain platform operations or lead to asset price crashes. Third, operational risks—HashKey, as a regional leader, has yet to turn profitable; during market downturns, a liquidity crisis could threaten operations. Investors should consider both compliance credentials and financial health when choosing platforms.

In Conclusion

HashKey’s prospectus epitomizes the transition of the crypto industry from “wild growth” to “regulated development.” Today, the crypto market is no longer a playground for retail speculation but is gradually becoming a new battlefield for institutional deployment. Compliance, institutionalization, and diversification are reshaping the underlying logic of the industry. For investors, participation requires more rational judgment—recognizing growth potential in new directions while being alert to risks; for industry players, compliance credentials and business innovation are core competitive advantages. The crypto market remains in its early stages of development, with challenges and opportunities coexisting. Only those who respect regulation, focus on risk management, and pursue continuous innovation can seize industry growth opportunities.