Victory Securities to launch first SFC-approved virtual asset structured products in Hong Kong

Victory Securities will be the first licensed Hong Kong crypto broker to offer cash-settled virtual asset structured products to professional investors.

In a press release published Nov. 4, Victory Securities announced plans to launch virtual asset structured products aimed at professional investors by the end of this year.

The firm received approval from the Securities and Futures Commission to promote and sell cash-settled virtual asset structured products to investors, making Victory the first licensed broker to offer such products in Hong Kong.

Virtual asset structured products allow investors to earn higher returns depending on certain market conditions. They will also be able to manage risks related to market volatility and virtual asset structured products.

Last year, Victory Securities shared the news that it had received approval from the Hong Kong SFC to offer virtual asset trading and advisory services to retail investors.

Additionally, Victory will begin offering designated products and services to stablecoin holders through the broker’s account in order to generate relatively stable returns from certain products and services.

Previously, customers were already able to redeem money market funds through the VictoryX mobile app, but this is the first time the firm has offered to make it easier for stablecoin holders to earn extra returns.

Both products are expected to be released by the end of this year.

Victory Securities Executive Director Kennix Chan noted that currently Hong Kong does not have many options for government-regulated strategic investment products, especially in the virtual asset investment market.

“The regulatory green light for Victory Securities to market virtual asset structured products marks an important step towards Hong Kong building a comprehensive virtual asset ecosystem,” Chan said.

SFC brokers Executive Director Eric Yip said on October 28 that the Hong Kong SFC has promised to deliver the final list of crypto exchanges that will receive full licenses by the end of the year.

In addition, Hong Kong regulators will establish an advisory panel to exchange licenses to continue the collaborative effort, which is scheduled to become operational in early 2025.

On the same day, Hong Kong Exchanges and Clearing Limited announced plans to launch a Virtual Asset Index Series on November 15, 2024.