Hong Kong’s Victory Securities becomes the first broker to provide virtual asset-structured products

The Hong Kong digital asset broker Victory Securities announced on November 4 that it plans to introduce 2 new structured products for its advanced clientele. The announcement comes after Victory Securities got the approval of the Hong Kong Securities and Futures Commission to offer structured products.

The licensing will allow the platform to distribute and market virtual asset-structured products. The products, which are meant to roll out by the end of the year, will be cash-settled. Notably, the broker will be the first crypto broker to offer such products in Hong Kong and the first to receive approval of that kind from the Hong Kong SFC. 

Victory Securities hopes to continue promoting innovation within the Hong Kong virtual asset industry. The broker aims to act as a bridge between traditional finance and digital assets while offering compliant investment products for its users. Introducing virtual asset-structured products will also help the company solidify its standing in the Hong Kong virtual assets market.

Victory Securities reiterates the need for diverse investment options

According to Victory Securities, the upcoming products will provide more diversity in the country’s digital asset products. Structured products allow investors to earn different types of returns depending on market conditions. 

The brokerage firm confirmed that structured products are connected to the performance of digital assets. Investors can then earn higher returns, achieve various investment objectives, and avoid risks associated with digital asset investments. 

The company mentioned that its clients who hold stablecoins through the Victory Securities omnibus account will earn extra yields from the products. Stablecoin holders will also have more stable returns from the given products. 

The Victory Securities Executive Director, Kennix Chan, highlighted the essence of advanced products for professional investors in Hong Kong. The director pointed out the country’s lack of strategic investment options and how the recent approval will drive structured products

“The regulatory green light for Victory Securities to market virtual asset structured products signifies an important step forward for Hong Kong to build a comprehensive virtual asset ecosystem.”

–Kennix Chan, Victory Security Executive Director

Kennix also highlighted that the brokerage firm would continue improving investors’ situation by helping them diversify their portfolios. The executive director also insisted that the innovations will enable investors to maximize profits under different conditions. 

Hong Kong authorities put more efforts into crypto licensing

The Hong Kong Commission is taking the necessary steps to improve the country’s virtual asset regulatory environment. The SFC executive director of intermediaries, Dr. Eric Yip, spoke about the commission’s plans during FinTech Week 2024. While mentioning his short time as the SFC executive director, Yip still confirmed his continued attendance at regulatory events. 

Yip noted the increased developments and innovation in the virtual asset market. The SFC director revealed that the fast-growing sector necessitates comprehensive regulations to protect Hong Kong crypto investors. Yip mentioned that FinTech Week 2024 was the perfect platform for him to reveal the commission’s plans for the regulatory future of Hong Kong’s digital assets markets. 

The commission hopes to improve the licensing process of digital asset firms and products, focusing on increasing licensed exchanges in the country. The SFC also focuses on Web3, tokenization, creating a consultation panel for firms, improving investor protection, and establishing long-standing international partnerships.