CMB International Securities, a subsidiary of China Merchants Bank, launched virtual asset trading services on August 18, becoming the first Chinese bank-affiliated securities firm to offer compliant crypto transactions in Hong Kong.
According to a local report, the platform will provide 24/7 trading for Bitcoin, Ethereum, and Tether through an integrated mobile application requiring Know Your Customer verification.
The launch leverages Type 1 and Type 7 licenses approved by Hong Kong’s Securities and Futures Commission in July 2025, operating under strict compliance with the Securities and Futures Ordinance and the new Stablecoin Ordinance effective August 1.
CMB International’s trading platform employs multiple security mechanisms, including cold storage wallets, real-time risk monitoring, and third-party audits.
Traditional Finance Embraces Digital Asset Integration Strategy
The move positions China Merchants Bank’s subsidiary as an industry pioneer among over 40 licensed virtual asset platforms in Hong Kong, including established players like HashKey Exchange and OSL.
CMB International’s assets under management exceeded 130 billion yuan by 2024, representing nearly 15% annual growth that crypto services aim to accelerate further.
The platform’s technical partnership with OKX Planet provides trading engines and liquidity support for high-concurrency scenarios.
CMB International’s integrated account model allows simultaneous investment in virtual assets alongside traditional securities, targeting institutional investors seeking comprehensive asset allocation solutions.
Plans include collaboration with public blockchains like Solana to issue tokenized money market fund CMBMINT.
The initiative aligns with Hong Kong’s ASPIRe five-pillar strategy launched by the SFC in February 2025 to build a secure virtual asset ecosystem.
CMB Wing Lung Bank previously launched virtual asset ETF trading services in October 2024, providing access to Bitcoin and Ethereum-linked products on the Hong Kong Stock Exchange.
The bank’s mobile app features dedicated ETF sections with real-time market tracking and educational materials for retail investors.
Hong Kong Financial Services Secretary Paul Chan emphasized government support for traditional institutions entering virtual asset markets compliantly.
“We encourage traditional financial institutions to participate in the virtual asset market in a compliant manner,” he said.
The regulatory framework aims to balance investor protection with innovation while enhancing Hong Kong’s competitiveness as an international financial center.
Regulatory Evolution Drives Institutional Adoption Amid Security Concerns
Hong Kong has accelerated virtual asset platform licensing procedures since January 2025, reviewing nine additional applications beyond the 11 already approved platforms.
The government expanded tokenization efforts, including approved gold tokens and money market funds, while exploring real estate and private equity tokenization through Project Ensemble infrastructure.
The SFC has also issued strict custody standards following global crypto security incidents that resulted in over $3 billion in losses during the first half of 2025.
Recent attacks included a $48 million multi-chain breach at Turkish exchange BtcTurk and the most significant Bybit’s $1.5 billion February loss, the largest single incident.
Notably, the Hong Kong crypto market value is rapidly growing. In fact, Hong Kong-listed companies raised over $1.5 billion in July alone for crypto ventures, with OSL Group securing $300 million for global expansion and stablecoin infrastructure.
SenseTime Group obtained HK$2.5 billion for blockchain applications while JF SmartInvest Holdings raised HK$785 million for tokenized Real World Assets investments.
Similarly, over 40 companies submitted stablecoin license inquiries before the August 1 regulation took effect, including major firms like JD.com, Ant Group, Standard Chartered, and Circle.
Hong Kong Monetary Authority Chief Executive Eddie Yue confirmed that only a small number of initial licenses will be granted despite extensive interest.
Mainland Chinese institutions, including Guotai Junan International and Tianfeng International, initiated license upgrade processes to launch similar services.
However, Chinese regulators simultaneously crack down on mainland stablecoin research and events, with brokerages receiving guidance to cancel activities and stop distributing token-related analysis.
The contrasting approaches show Beijing’s support for Hong Kong’s digital asset hub development while maintaining strict mainland crypto prohibitions.
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