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OSL is strengthening Hong Kong's crypto industry by partnering with Interactive Brokers and Arta TechFin.
Interactive Brokers Partnership
On Monday, Interactive Brokers Group and OSL announced their partnership to allow professional investors in Hong Kong to trade crypto.
For the Interactive Brokers, the deal secures Hong Kong as its second market in which it can offer crypto. In the US, it offers crypto trading via Paxos Trust Company.
Whilst Interactive Brokers users must already have a Paxos account to trade crypto in the US, the brokerage firm will keep track of its own client's crypto holdings in Hong Kong as it serves as an introducing broker to OSL. OSL will hold the cryptocurrencies in custody in cold wallets.
The service is only be available to professional investors who have at least HK$8 million (US$1 million). Interactive Brokers is only offering spot trading on Bitcoin and Ethereum for now but will consider adding other cryptos.
Read more: Banks Assemble for Hong Kong Sale of Tokenized Green Notes
David Friedland, head of Asia Pacific at Interactive Brokers, said the firm would like to "do this anywhere we can find licensed partners and a regulatory regime that ensures the safety of the assets."
Interactive Brokers have been unsuccessful in its digital asset license in Singapore, but hopes the new deal will demonstrate its viability to regulators. Friedland also hopes that Hong Kong will expand its license regulation to include retail investors.
“Initially I thought Hong Kong’s regulators were off the mark,” he said. “But they listened, and now Hong Kong’s moving faster than others in the region.”
Arta TechFin
OSL and Arta TechFin are partnering to create an end-to-end virtual asset financial service ecosystem.
A full spectrum of regulation virtual asset solutions such as the origination of asset-backed security tokens, secondary trading of physically-settled and cash-settled VA spot and VA derivatives, and custody of OTC and exchange- traded VA will be offered.
The deal, which is subject to obtaining required regulatory approval, rides on the "tailwind" of the Hong Kong government's "progressive virtual asset policies" according to a press release.
Read more: Crypto Hub Race Heats Up as DBS Readies Digital Asset Licence Application in Hong Kong
For primary trading, OSL will serve as a placing agent for Arta's security token offering in Hong Kong whilst Arta's corporate finance team will lead in tokenization technology service, deal sourcing and structuring, and fund raising.
OSL will serve as Arta's exclusive trading partner to conduct physically-settled virtual asset trading activities for secondary trading for 12 months.
