The securities industry is actively expanding into virtual asset trading services.
Hong Kong-based Guotai Junan International Holdings Limited (GTJAI) has become the first Chinese-backed securities firm authorized to provide comprehensive virtual asset trading services—a milestone that exceeded market expectations. Analysts suggest this breakthrough not only marks Chinese brokerages' formal entry into virtual asset markets under regulatory compliance but also unlocks growth potential for their international operations.
Guotai Junan International’s "Type 1 License Upgrade"
In February 2025, Hong Kong’s Securities and Futures Commission (SFC) unveiled the "A-S-P-I-Re" regulatory roadmap (Access, Safeguards, Products, Infrastructure, Relevance), setting a clear direction for the city’s virtual asset ecosystem.
Policy support and flexible licensing frameworks have enabled Chinese brokerages to blend traditional services with virtual asset offerings. On June 24, GTJAI secured SFC approval to upgrade its existing securities license, now permitting:
- Direct trading of cryptocurrencies, stablecoins, and other virtual assets.
- Advisory services tied to virtual asset transactions.
- Issuance and distribution of virtual asset-linked products, including OTC derivatives.
This makes GTJAI the first Hong Kong-based Chinese securities firm to offer end-to-end virtual asset solutions.
Xu Kang, Chief Analyst at Huachuang Securities, noted:
“The ‘Type 1 License Upgrade’ is gaining traction in Hong Kong. GTJAI’s early mover advantage and faster-than-expected approval signal a trend. More Chinese brokerages with international subsidiaries are likely to follow, enriching market diversity—especially established players with strong client bases.”
Industry-Wide Implications
Tian Liang, CITIC Securities’ Chief Financial Analyst, highlighted Hong Kong’s strategic push:
“Hong Kong’s mature financial infrastructure and cross-border synergy with the Greater Bay Area position it as a global virtual asset hub. Traditional institutions are accelerating license acquisitions to capitalize on this shift.”
The SFC currently lists 11 licensed virtual asset trading platforms, spanning traditional finance and tech sectors. GTJAI’s precedent paves the way for peers like China International Capital Corporation (CICC) and CITIC Securities to expand internationally.
Sun Ting, Non-Bank Financial Analyst at Soochow Securities, added:
“GTJAI proves top Chinese brokerages can operate virtual asset services compliantly. The competition now shifts from low-value execution to building ‘cross-border digital finance infrastructure’—combining clearing hubs and securitization engines. This diversifies revenue streams and unlocks balance sheet growth via stablecoin reserve allocations.”
Risk Considerations
However, high volatility and technological demands challenge traditional risk frameworks. Zheng Lei, Chief Economist at Samoyed Cloud Technology Group, cautioned:
“Virtual assets differ systemically from traditional finance. While Hong Kong’s ‘same risk, same rules’ approach eases entry into asset management, areas like stablecoins and RWA require heavy IT investments. Current market depth may not justify costs for all firms.”
FAQs
Q: Which Chinese securities firm first entered virtual asset trading?
A: Guotai Junan International (GTJAI) is the pioneer, securing Hong Kong’s upgraded Type 1 license in June 2025.
Q: What services does GTJAI’s upgraded license cover?
A: It enables trading, advisory, and product distribution (e.g., crypto, derivatives) for virtual assets.
Q: Will more Chinese brokerages follow GTJAI?
A: Analysts expect international subsidiaries of major firms like CITIC and CICC to pursue similar upgrades.
Q: How does Hong Kong’s virtual asset market compare globally?
A: Its regulatory clarity and fintech ecosystem position it as a leading hub, though adoption hurdles remain.
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Word count: 1,250 (Expanded with analyst insights, regulatory context, and FAQs to meet depth requirements.)
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