Futu Securities embraces the crypto trend—what's behind its move to launch deposit services?
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Futu Securities embraces the crypto trend—what's behind its move to launch deposit services?
Traditional finance and crypto are accelerating their integration.
Navigating Web3 tides with focused insightsBy: 1912212.eth, Foresight News
On the morning of May 7, Twitter user FORAB revealed that Futu Securities was internally testing a token deposit feature supporting Bitcoin, Ethereum, and USDT. Just hours later, this was officially confirmed. Futu Securities International (Hong Kong) Limited, a Hong Kong-based fintech giant (hereinafter referred to as "Futu Securities"), announced that its core trading platform, Futu NiuNiu, has officially launched BTC, ETH, and USDT deposit services. Eligible investors can now deposit cryptocurrencies via the one-stop trading platform Futu NiuNiu, trade digital assets, and then invest in more asset classes or withdraw funds.
Hong Kong VATP License Approved in January This Year
Futu Holdings Limited is a Hong Kong-headquartered fintech company founded in 2012, dedicated to delivering digital brokerage and wealth management services through technological innovation. According to official data, as of Q4 2024, Futu had over 34 million registered users globally and approximately 2.5 million paying users, representing a year-on-year increase of 39.1%. Its performance in the Hong Kong market is particularly strong, with Futu NiuNiu reaching over 50% of the local adult population. In 2024, Futu’s total revenue increased by 86.8% year-on-year, while non-GAAP adjusted net profit grew by 105.4%.
Li Hua, Founder and CEO of Futu Securities
Futu Securities is its core subsidiary and a licensed broker in Hong Kong, holding Type 1 (Securities Trading), Type 4 (Advising on Securities), and Type 9 (Asset Management) licenses issued by the Securities and Futures Commission (SFC) of Hong Kong. These licenses grant it legal authority to conduct securities trading and related financial services. They also ensure that Futu's securities business in Hong Kong operates under strict regulatory oversight, meeting compliance requirements such as anti-money laundering and know-your-customer rules. However, cryptocurrency-related services fall under Virtual Asset Trading Platform (VATP) regulation, requiring an additional VATP license application.
As early as 2021, Futu expressed interest in the crypto market. According to reports from Cailian She, Robin Li Xu, Vice President of Futu Holdings, stated at the time that the company had applied for digital currency-related licenses in Hong Kong, the U.S., and Singapore, planning to enter the crypto trading space—though progress was slow. Hong Kong's regulatory environment toward crypto assets has gradually opened up in recent years. In 2023, the SFC introduced the VATP licensing regime, allowing compliant platforms to offer crypto trading services to retail investors. Notably, PantherTrade, a wholly-owned subsidiary of Futu Holdings, applied for a VATP license that year and finally received approval from the Hong Kong SFC at the end of January 2025.
The newly launched cryptocurrency deposit service enables regular users to top up their accounts with Bitcoin (minimum 0.0002 BTC) and Ethereum (minimum 0.001 ETH) directly from personal wallets, with funds typically credited within one hour. Professional investors can deposit USDT using designated networks without transaction fees. This functionality allows Futu NiuNiu users to seamlessly manage both traditional and crypto assets on a single platform—from Hong Kong stocks and U.S. stocks to Bitcoin and ETFs—greatly enhancing portfolio flexibility.
Futu's move is not isolated but part of a broader trend among global fintech platforms embracing cryptocurrencies. Robinhood in the United States serves as a clear example. The platform, which disrupted traditional brokers with its "zero-commission" model, launched Bitcoin and Ethereum trading services as early as 2018 and later expanded to include Dogecoin, Litecoin, and other assets. Robinhood’s crypto business quickly became a major revenue driver; its 2023 financial report showed that crypto trading accounted for nearly 20% of total revenue. Similarly, global investment platforms like eToro have made cryptocurrencies a core offering, attracting large numbers of young investors. Futu Securities' initiative clearly draws inspiration from these pioneers—the launch of its crypto deposit service is not only a necessary competitive move but also a responsive measure to evolving user demands.
Lowering the Barrier for Stock Traders to Buy Crypto
For traditional stock traders on Futu NiuNiu, the introduction of crypto deposit services holds significant appeal. First, it enhances portfolio diversification. Stock traders are accustomed to investing in conventional assets such as Hong Kong stocks, U.S. stocks, and ETFs. However, cryptocurrencies, as alternative assets with high growth potential, have drawn global investor attention in recent years. In 2024, Bitcoin prices briefly surpassed $100,000, demonstrating robust market demand. By allowing stock traders to deposit BTC, ETH, and USDT into the same account, Futu enables direct participation in the crypto market without needing to register on a separate exchange, thereby lowering learning and operational barriers.
Second, Futu’s crypto services provide stock traders with a new tool to hedge market risk. The stock and crypto markets often exhibit different volatility cycles—for instance, when Bitcoin sharply declined in 2021, certain stock markets remained stable. Stock traders can mitigate investment risks by allocating a small portion of their portfolios to crypto assets and seize upward opportunities in the crypto market during downturns in traditional markets.
The USDT deposit function offers professional investors a stable fund transfer hub, facilitating flexible switching between stock and crypto markets. Compared to platforms like Robinhood, which successfully attracted young investors through crypto trading, Futu NiuNiu already has a relatively high proportion of young and high-net-worth users who show greater openness to cryptocurrencies. This new feature is expected to further enhance platform stickiness and encourage users to increase their account balances.
Multifaceted Investment Opportunities for Crypto Traders
For active cryptocurrency traders ("crypto speculators"), Futu Securities’ deposit service also presents notable advantages. First, the Futu NiuNiu platform supports deposits of Bitcoin, Ethereum, and USDT, covering mainstream assets in the crypto market. As the two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum offer high liquidity and broad market recognition. USDT, as a stablecoin, provides value anchoring and reduces volatility risk in trading.
Second, Futu’s brand reputation and regulatory compliance deliver enhanced security for crypto traders. Compared to some crypto exchanges that have suffered asset losses due to technical vulnerabilities or hacking attacks, Futu, as a licensed broker, leverages mature trading systems and stringent regulatory standards, significantly reducing fund risks. For example, Robinhood in the U.S. attracted massive users through crypto trading, with compliance and technical stability being key factors. Futu’s similar positioning could replicate this success, appealing to crypto traders who prioritize security and transparency.
In addition, Futu NiuNiu’s one-stop platform enables crypto traders to rapidly switch between crypto and traditional financial assets. Users can manage Bitcoin alongside Hong Kong and U.S. stocks within the same account, eliminating the hassle of cross-platform transfers and improving capital efficiency. This seamless integration is especially attractive to crypto traders seeking diversified investments. Many crypto traders also pay attention to opportunities in U.S. and Hong Kong equities. When crypto and stock market cycles diverge—one rising while the other falls—it becomes easier for investors to flexibly capture fluctuations and take advantage of dual opportunities in both markets.
However, crypto traders should note that Futu’s crypto services currently target Hong Kong and overseas users only. Mainland Chinese users are excluded due to regulatory restrictions. Additionally, Futu sets a professional investor threshold for USDT deposits (requiring proof of HK$8 million in assets), leading some to jokingly claim it “excludes retail investors.” The high barrier makes it nearly impossible for small retail traders to participate, and the actual number of users engaging in deposits remains unknown.
Summary
For Futu itself, this move not only meets existing user demands but may also attract new users, further expanding its market share. From an industry perspective, Futu’s entry cannot be underestimated. Cryptocurrencies are accelerating into the mainstream, and the compliant operations of traditional financial platforms like Futu bring much-needed transparency to an industry historically lacking trust. Finally, Futu’s actions could trigger a ripple effect. Local Hong Kong brokers such as Victory Securities already support crypto deposits; Futu’s participation may inspire more traditional financial institutions to follow suit, accelerating industry consolidation.
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