Tiger Brokers launches virtual asset trading service in Hong Kong, officially entering Web3
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Tiger Brokers launches virtual asset trading service in Hong Kong, officially entering Web3
Completed Upgrade of License No. 1, enabling provision of virtual asset trading services to professional investors.
Navigating Web3 tides with focused insightsAuthor: Bowen, Bailu Salon
On May 6, 2024, according to Yahoo Finance, Tiger Brokers (Hong Kong) officially launched its virtual asset trading service. Professional investors in Hong Kong can now trade 18 types of virtual assets through Tiger Brokers' investment platform, Tiger Trade, alongside stocks, options, futures, U.S. Treasuries, funds, and other global assets—all within a single integrated account, eliminating the need to open and manage separate accounts across different brokers and platforms.
With the successful listing of spot Bitcoin and Ethereum ETFs in Hong Kong, the region's virtual asset market has entered a new phase. Institutional and retail investors from traditional finance now have diversified avenues to enter the market. To further advance, the industry must now focus on innovation implementation and distribution expansion. In this process, brokers’ role as a "bridge" connecting traditional investing with Web3 will become increasingly important. When facing established financial players ("old money"), brokers’ expertise and experience in risk management will serve as a critical safeguard for investor assets and a key enabler for deeper market growth.
As a traditional brokerage firm, Tiger Brokers has seized this opportunity to actively expand into the virtual asset market. This article by Bailu Salon will help readers understand Tiger Brokers’ strategy in virtual assets and uncover more opportunities.
Tiger Brokers
Founded in 2014 and headquartered in Beijing, China, Tiger Brokers specializes in enhancing individual investors’ trading efficiency. The company offers trading services for U.S., Hong Kong, and UK stocks and holds brokerage licenses or authorizations in the United States, New Zealand, and Australia. Tiger Brokers (Hong Kong), the Hong Kong branch, holds Type 1, 2, 4, 5, and 9 licenses issued by the Securities and Futures Commission (SFC) of Hong Kong.
In 2023, Tiger Brokers reported total revenue of $273 million, a 21% increase from 2022. As of the end of 2023, client total assets reached $30.6 billion, growing over 100% year-on-year. In Q3 2023, the company added 29,000 new global brokerage accounts, bringing the total to 2.15 million, while funded accounts increased by 25,000 to reach 870,000. Tiger Brokers demonstrated strong business performance in 2023, driven by global expansion and product innovation.
Upgraded to Type 1 License and Obtained SFC’s Type 9 License
On January 25, 2024, Tiger Brokers announced that it received approval from the Hong Kong SFC to upgrade its Type 1 license, allowing professional investors to trade virtual assets via Tiger Brokers’ SFC-licensed platform. Going forward, Tiger Brokers plans to extend virtual asset trading services to retail investors, subject to regulatory requirements.
Regarding this milestone, Zeng Qingfei, CFO of Tiger Group International, stated: "This license upgrade marks a significant step for Tiger Brokers. We are excited to introduce virtual asset trading and further meet our clients’ demands in this important area."
On March 28, 2024, Tiger Brokers (Hong Kong) obtained the SFC’s Type 9 asset management license, enabling it to provide a range of asset management services, including discretionary accounts for both retail and professional investors, and collective investment schemes tailored for professional investors.
Xu Yang, Partner at Tiger Group International, noted that beyond serving professional investors, the Type 9 license also allows Tiger Brokers to offer discretionary managed accounts to retail investors, effectively lowering the entry barrier.
Official Launch of Virtual Asset Trading Service
On May 6, 2024, Tiger Brokers (Hong Kong) announced the official launch of its virtual asset trading service, becoming one of the first technology-driven brokerages in Hong Kong to support integrated trading and management of both traditional securities and virtual assets.
Zeng Qingfei, CFO of Tiger Group International, said: "We are honored to be among the first internet brokers in Hong Kong to launch virtual asset trading, meeting investor demand ahead of the curve. As investors seek increasingly diversified asset allocation, Tiger Brokers’ expanded product offerings will help them capture various investment opportunities across markets. Our unified trading platform enables seamless trading and management across asset classes, enhancing user experience and investment efficiency."
"Tiger Brokers will offer competitive trading fees. Virtual asset trading commissions are as low as 0.2% of transaction value, with custody fees waived. Unlike stock trading, virtual asset transactions are settled instantly, and trading is available 24/7. Through the user-friendly Tiger Trade platform, all registered users in Hong Kong can access real-time virtual asset pricing and price change rankings, staying updated on market movements anytime, anywhere. Additionally, Hong Kong dollars and U.S. dollars can be instantly exchanged on the Tiger Trade app on a T+0 basis."
Currently, Tiger Brokers’ virtual asset trading service is available exclusively to professional investors. In the future, subject to regulatory compliance, Tiger Brokers plans to extend the service to retail investors. The company is also considering adding spot withdrawal services for virtual assets.
The launch of Tiger Brokers (Hong Kong)'s virtual asset trading service not only provides professional investors with greater investment choices and convenience but also signals further openness and innovation in Hong Kong’s financial market regarding virtual assets. As the regulatory framework continues to mature and the market evolves, brokerages will gradually open more virtual asset services to institutional and retail investors, helping position Hong Kong as a major global hub for virtual asset trading.
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