Victory Securities is set to launch Hong Kong’s first SFC-approved virtual asset structured products.

Victory Securities is poised to become the first licensed crypto broker in Hong Kong to offer cash-settled virtual asset structured products specifically for professional investors.

In a press release on November 4, the firm revealed its intention to introduce these innovative products by the end of the year, having received approval from the Securities and Futures Commission (SFC) to market and sell them. This milestone positions Victory as the first licensed broker in Hong Kong to provide such offerings.

These virtual asset structured products will allow investors to potentially achieve higher returns based on specific market conditions while also managing risks associated with market volatility.

Last year, Victory Securities announced that it had obtained SFC approval to offer virtual asset trading and consulting services to retail investors. The firm is also planning to introduce designated products for stablecoin holders, enabling them to earn relatively stable returns through various offerings via the broker’s account.

Previously, clients could invest in money market funds through the VictoryX mobile app, but this marks the first instance of the firm facilitating additional yields for stablecoin holders.

Both new product lines are expected to launch by year-end.

Kennix Chan, Executive Director of Victory Securities, emphasized that there are currently limited regulated strategic investment products available in Hong Kong, particularly in the virtual asset sector.

“The regulatory approval for Victory Securities to market these structured products is a significant step towards developing a comprehensive virtual asset ecosystem in Hong Kong,” Chan stated.

On October 28, Eric Yip, Executive Director for intermediaries at the SFC, noted that the SFC plans to finalize the list of crypto exchanges that will receive full licenses by the year’s end. Furthermore, regulators will establish a consultation panel to facilitate cooperation with licensed exchanges, aiming for operational readiness by early 2025.

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