HashKey Holdings has begun trading on the Hong Kong Stock Exchange, becoming the first digital asset company to go public under Hong Kong’s new regulatory regime. The crypto exchange raised HKD 1.6 billion in its Initial Public Offering (IPO), equivalent to approximately USD 206 million.
The stock (ticker: 3887.HK), however, opened below the issue price and declined by around 5 percent during the trading day to roughly HKD 6.34 - a muted debut despite strong oversubscription. The company placed 240.6 million shares at HKD 6.68. Pricing was set at the upper end of the indicated range of HKD 5.95 to 6.95. This implies a valuation of approximately HKD 18.5 billion (USD 2.4 billion). Demand in the retail segment exceeded supply by a factor of 394. Institutional investors such as Fidelity, UBS, and CDH Investments participated as cornerstone investors, subscribing a total of HKD 590 million. Around 80 percent of the institutional tranche was allocated to the top 20 investors.
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Market leader with 75 percent share in Hong Kong
HashKey Group was founded in 2018 by Xiao Feng. The company holds a full license from Hong Kong’s Securities and Futures Commission (SFC) and is authorized under Type 1 (Dealing in Securities) and Type 7 (Automated Trading Services), as well as a Virtual Asset Trading Platform license under the Anti-Money Laundering Ordinance. Since August 2023, HashKey has been permitted to serve retail investors as one of only two licensed platforms - previously, trading was limited to institutional clients.
According to its own disclosures, HashKey controls around 75 percent of the Hong Kong crypto market, placing it more than three times ahead of its nearest competitor. By the end of September 2025, the platform had processed cumulative trading volume of HKD 1.7 trillion (USD 218 billion). In addition, the company manages approximately HKD 29 billion in staking assets, positioning itself as the largest provider in Asia.
Losses despite market dominance - aggressive fee strategy weighs on results
Despite its dominant market position, HashKey continues to post substantial losses. Between 2022 and mid-2025, net losses totaled HKD 2.9 billion (USD 372 million). In 2024 alone, the net loss exceeded HKD 1.18 billion (USD 151 million). In the first half of 2025, however, the group generated revenues of HKD 283 million (USD 36 million), representing a year-on-year decline of 26 percent.
Analysts attribute the persistent losses to ultra-low trading fees, which HashKey employs as part of its strategy to capture market share. Fees are set below 0.1 percent and are designed to attract volume from established platforms such as Binance or OKX. This “race to the bottom” strategy secures market share but erodes profitability. According to the prospectus, monthly cash burn remains elevated.
To reduce its dependence on trading fees, HashKey has launched its own Layer-2 blockchain, HashKey Chain, and is expanding into the tokenization of real world assets (RWA). This diversification strategy is intended to unlock additional revenue streams over the medium term, while the core trading business continues to face margin pressure.
Hong Kong positions itself as a crypto hub in Asia
HashKey’s IPO marks a strategic milestone for Hong Kong as an emerging digital asset hub. The city is competing with Singapore for leadership in the Asian crypto market. Since June 2023, Hong Kong has implemented a comprehensive licensing regime for Virtual Asset Service Providers (VASPs). Currently, eleven exchanges hold an SFC license, including HashKey and OSL.
The regulatory opening to retail clients differentiates Hong Kong from other jurisdictions. It is intended to attract both institutional and private capital from mainland China, where crypto trading remains prohibited. In this context, HashKey effectively serves as a regulatory gateway for Chinese industrial capital seeking exposure to digital assets.
The IPO, however, comes during a challenging market phase. Bitcoin has fallen by around 30 percent from its all-time high of approximately USD 126'000 in August 2025. Ethereum is trading roughly 25 to 30 percent below its recent highs. Other publicly listed crypto companies such as Circle, Bullish, and Gemini have also declined between 30 and 70 percent from their peaks.
IPO proceeds earmarked for technology and risk management
HashKey plans to allocate the IPO proceeds primarily to technology infrastructure, workforce expansion, and risk management systems. JPMorgan Chase and Guotai Junan acted as joint sponsors of the transaction. In addition to its Hong Kong licenses, HashKey Global holds further regulatory approvals, including Capital Markets Services authorization from the Monetary Authority of Singapore (MAS), a Crypto-Asset Exchange License from Japan’s Financial Services Agency (FSA), and VASP licenses in the EU and Bermuda.
As the first crypto-native exchange listed on the Hong Kong capital market, HashKey’s debut is likely to increase regulatory pressure on traditional financial institutions to expand their digital asset offerings. Whether HashKey can achieve profitability will depend on the success of its diversification strategy and its ability to adjust its fee structure without suffering a significant loss of market share.
