Hong Kong's first? Licensed cryptocurrency exchange HashKey goes public in Hong Kong!

In an era when Hong Kong is proactively embracing and regulating the cryptocurrency wave, a milestone event is about to be recorded in history. Hong Kong licensed cryptocurrency group HashKey Holdings Limited (“HashKey”) has officially launched its initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange, aiming to become the city’s first publicly listed licensed cryptocurrency exchange. This listing is not only a crucial step in HashKey’s own development but is also seen as an important test of confidence in Hong Kong’s Web3 strategy and the global capital markets.

IPO Core Details

According to HashKey’s prospectus, its global offering plans to raise up to HK$1.67 billion (approximately US$215 million). The company intends to issue about 240.6 million shares, with the offering price set between HK$5.95 and HK$6.95 per share. At the highest price, HashKey’s listing valuation will approach HK$19 billion (about US$2.44 billion).

The subscription period for investors starts at 9:00 a.m. on December 9 (Hong Kong time) and lasts until noon on December 12. If all goes smoothly, the final IPO pricing will be determined and announced on December 16, with shares officially trading on December 17, 2025, under the stock code “3887.” Leading financial institutions such as JP Morgan Chase and Guotai Junan International serve as joint sponsors for this IPO.

HashKey has a clear plan for the use of proceeds:

• Expanding regulatory licenses and operational capacity: Seeking licenses in additional jurisdictions such as Japan and Bermuda to expand its global compliance footprint.
• Strengthening infrastructure: Investing in upgrades to institutional-grade custody and clearing infrastructure to improve asset security and processing efficiency.
• Expanding into new business areas: Actively developing stablecoin infrastructure and cross-border payment markets, and continuously investing in its Layer2 network “HashKey Chain,” especially in the tokenization of real-world assets (RWA).

Despite the uncertainties in the crypto market, HashKey’s IPO has attracted the attention of many heavyweight institutions. Most notably, it boasts an impressive lineup of cornerstone investors. Nine institutions, including UBS Asset Management, Fidelity International, Infini Capital, and CDH Investments, have committed a total of US$75 million (about HK$590 million) to subscribe to HashKey’s shares, agreeing to a six-month lock-up period.

This move is highly significant. The participation of cornerstone investors, especially top global traditional financial giants like UBS and Fidelity, undoubtedly injects a strong dose of confidence into HashKey’s IPO. This not only represents their recognition of HashKey’s intrinsic value and potential, but also serves as a powerful endorsement of Hong Kong’s cryptocurrency regulatory framework and its positioning as a “global Web3 hub.” In an industry that urgently needs compliance and trust, such support from mainstream finance is far more symbolic than the capital itself.

Financial Performance

It is worth noting that HashKey’s financial statements present a complex picture of both opportunities and challenges.

On one hand, the company’s business growth has been remarkable. Its trading volume soared from HK$4.2 billion in 2022 to HK$638.4 billion in 2024, an increase of over 150 times. As of September 30, 2025, the scale of staked assets managed on its platform reached HK$29 billion, making it the largest staking service provider in Asia and the eighth largest globally. In the RWA field, the assets carried on its self-developed “HashKey Chain” have also reached HK$1.7 billion. These figures highlight HashKey’s absolute leading position in the Hong Kong market (over 75% market share) and its strong ecosystem-building capability.

However, rapid expansion has also brought significant cost outlays. Financial reports show that over the past three and a half years, HashKey has accumulated losses close to HK$2.9 billion. In 2022, it lost HK$585 million, and losses expanded to HK$1.19 billion in 2024. The company attributes these losses to significant spending on R&D, marketing, administrative management, and generous equity incentives to attract talent.

Entering 2025, the situation has improved. In the first half of 2025, the company’s net loss narrowed to HK$507 million, a year-on-year decrease of about 34.8%, indicating that cost-control measures have begun to show results. Although it is still operating at a loss, this shift in trend, combined with its steadily growing revenue streams (with transaction facilitation services accounting for nearly 70% of total revenue), sends a positive signal to the market: the company is on the path to profitability.

A Capital Compliance Gateway

HashKey’s listing is far more significant than the fate of a single company. It is widely seen as the first market referendum on the cryptocurrency policies that the Hong Kong government has vigorously promoted since 2022. Through establishing a clear licensing system, tightening custody requirements, and advancing stablecoin regulation, Hong Kong aims to become a regulated, institution-grade digital asset hub that stands in stark contrast to the “wild growth” of offshore models. The performance of HashKey’s IPO will directly reflect how the global capital market values and trusts this “Hong Kong model.”

On a deeper level, this IPO also reveals Hong Kong’s unique role in China’s financial landscape. Against the backdrop of a strict ban on cryptocurrency trading in mainland China, Hong Kong has become a critical and compliant “gateway” for traditional Chinese industrial capital to enter the digital asset field. HashKey’s shareholding structure fully illustrates this: Lu Weiding, chairman of Wanxiang Group—one of China’s largest auto parts manufacturers—holds 43.2% of the company’s shares through affiliated entities, making him the largest controlling shareholder. Founder Dr. Xiao Feng also has a strong background in China’s asset management industry. HashKey’s listing can thus be seen as a landmark event in which China’s vast industrial capital is formally deploying into the global crypto economy via Hong Kong, a regulated bridge.

However, under the spotlight and amidst capital fervor, HashKey is not without its worries. The performance of its platform token HSK and the resulting community trust crisis are casting a shadow over the company’s glory.

Recently, an open letter titled “An Open Letter to Dr. Xiao Feng” written by Korean community member Xtormfrog has been widely circulated in both Chinese and Korean communities. In the letter, the author fiercely accuses HashKey’s management of sacrificing the interests of retail investors while pursuing IPO and compliance ambitions. The letter points out that the HSK token was initially created to raise funds from the retail market, and many investors bought in at around $1, lured by exaggerated promotion from J (a former executive). Now, the token price has plunged by more than 60%, causing heavy losses for investors.

The letter questions why HashKey has done almost nothing for the HSK token price and its holders, and accuses Dr. Xiao Feng of discussing Ethereum and RWA prospects at major forums without ever mentioning HSK. Comparing HashKey to exchanges like Binance and OKX, which compensate users in times of crisis, the author argues that HashKey is losing its most valuable “trust asset.” The letter calls on the group to grant greater authority to the current Korean market head, Skylar, whose pragmatic and community-oriented approach could help rebuild trust.

This controversy highlights a central dilemma facing HashKey: how to please regulators and traditional financial giants while also safeguarding the interests of the Web3-native community that provided early support. This is also the ultimate test faced by all crypto companies seeking to “enter the mainstream.”

Conclusion

HashKey’s successful listing in Hong Kong is undoubtedly one of the most significant events in the global crypto industry in 2025. It symbolizes the transition of crypto assets from the margins to the mainstream and marks a solid step for Hong Kong in the global Web3 race. Strong institutional endorsements, a clear compliance path, and the unique advantage of backing from Chinese capital paint a future full of possibilities for HashKey.

However, the road ahead is not without obstacles. Ongoing financial losses, a trust crisis from the community, and how to maintain a leading edge in increasingly fierce global competition are all severe challenges facing management. The bell-ringing ceremony on December 17 is not the end, but a brand new beginning. Whether HashKey can successfully navigate opportunities and challenges in the future will not only determine its own fate but will also significantly influence the evolution of Hong Kong’s and even Asia’s digital financial landscape. The world is watching.