Futu fires the first shot in Hong Kong brokers' "crypto transformation"
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Futu fires the first shot in Hong Kong brokers' "crypto transformation"
From Zero to One: Futu's Crypto Debut Year
Navigating Web3 tides with focused insightsAuthor: Zhou Zhou, Foresight News
Futu, the largest Chinese internet broker with 27 million registered users, is setting the first benchmark for crypto transformation among brokers in China (Hong Kong) through its exploration in the crypto space.
On the evening of August 20, 2025, as Futu released its second-quarter financial report, the market gained clearer insight into its strategy and progress in cryptocurrency operations. Since officially launching its crypto trading service in August 2024, Futu has rapidly expanded its crypto business to Hong Kong, Singapore, and the United States within just one year, achieving full-scale operations across all three regions.
In Hong Kong, Futu has offered crypto trading services to local residents for a full year, and its applied-for VATP license is expected to be approved for formal operation within the next half-year; in Singapore, Futu's Moomoo has also provided crypto trading services to Singapore residents for a year, making it currently the only licensed internet broker in Singapore offering such services; in the United States, Futu began rolling out cryptocurrency trading services in most U.S. states in June this year, supporting over 30 mainstream spot cryptocurrency trading pairs.
Hong Kong, Singapore, the United States...Futu is striving to quickly secure cryptocurrency operating licenses globally to expand this new business line.
Through this year-long effort, Futu has become one of the earliest and most deeply involved Chinese brokers in exploring crypto businesses. During the 2025 Q2 earnings call, a senior executive at Futu stated: "As of the end of the second quarter of 2025, the balance of assets related to Futu's crypto business reached approximately HK$4 billion, with peak daily average trading volume reaching $40 million."
Futu's Crypto Landscape
As global brokers increasingly enter the cryptocurrency space, this sector is gradually becoming a new trend in the financial industry. Take Robinhood, the largest internet broker in the United States, which launched cryptocurrency trading services as early as 2018, providing users with channels to buy and sell Bitcoin, Ethereum, and various other mainstream digital assets.
By the second quarter of 2025, Robinhood’s cryptocurrency revenue had surged approximately 98% year-on-year to $160 million, while the company’s total revenue stood at $989 million. This shows that cryptocurrency operations have become a significant part of the revenue structure for U.S. internet brokers like Robinhood, signaling an accelerating trend toward crypto-enabled transformation in brokerage firms.
Seeing U.S. brokers entering the space, Hong Kong-based brokers are also accelerating their entry into this field. Statistics show that up to 40 Hong Kong brokers have successfully upgraded their "Type 1 License" to venture into virtual asset businesses. Among them, Futu NiuNiu and Victory Securities stand out as leaders.
Futu's crypto initiatives are broad-ranging. In the Hong Kong market alone, they include upgrading its Type 1 License (allowing Hong Kong users to purchase cryptocurrencies such as Bitcoin, Ethereum, and Solana on the Futu app), applying for a VATP license (enabling services for both retail and institutional clients), partnering with China Asset Management on tokenized money market funds (RWA and crypto-based wealth management), and stablecoin ventures (Futu invested HK$440 million in TNG Bank to participate in stablecoin development).
The VATP license, in particular, has generated considerable market discussion. Once approved, it will allow Futu to operate a compliant cryptocurrency exchange in Hong Kong. A Futu executive said during the Q2 earnings call: "As an entry point into crypto, we believe that beyond spot trading, there will be significant monetization opportunities in areas such as staking and derivatives in the future."
"With the VATP license, we can serve not only retail customers but also reduce upstream clearing and settlement costs, while providing upstream services to institutional clients such as brokers," the executive added.
Therefore, although the current scale of crypto operations accounts for less than one percent of Futu’s overall business, it receives substantial internal attention. During the 2025 Q2 earnings call, both institutional investors like Morgan Stanley and Futu executives frequently mentioned the crypto business.
Diverse Players: Where Does Futu Stand?
Currently, numerous companies have emerged in Hong Kong's crypto market, including HashKey, OSL, Victory Securities, Tiger Brokers, and others. Incomplete statistics suggest that more than 50 companies now offer crypto services to retail users.
So, what advantages does Futu have?
First, Futu’s large user base is one of its biggest strengths in entering the crypto space. With 27.12 million registered users and asset-holding clients growing 41% year-on-year to reach 2.88 million, this number continues to rise. During the 2025 Q2 earnings call, an executive noted that Futu added 460,000 new asset-holding clients in the first half of 2025.
Second, Futu’s strong revenue and profitability are continuously funding and safeguarding its new ventures. According to the Q2 2025 financial report, Futu achieved revenue of HK$5.3 billion, up about 70% year-on-year, with net profit reaching HK$2.6 billion, a 113% increase. Futu also stated it would further increase investment in crypto and AI products.
Futu’s inherent internet DNA aligns closely with cryptocurrency operations. As an internet broker, Futu excels at leveraging new technologies and discovering new assets, attracting more retail users from traditional brokers and achieving dual growth in user scale and business innovation. Robinhood’s success in crypto further confirms the potential of internet brokers in this domain.
In addition, Futu’s early expansion into global markets via stock trading has laid the foundation for future growth in crypto services.
A Futu executive said: "The Hong Kong and Malaysian markets contributed over half of the new asset-holding clients in Q2, with additional client growth coming from Singapore, the U.S., and Japan."
It is understood that outside of its Hong Kong entity, Singapore and the U.S. are Futu’s largest overseas markets, followed by rapidly expanding operations in Malaysia and Japan, while Australia and Canada also show steady growth.
"We will launch deposit and withdrawal functions in Singapore and the U.S. in the second half of the year—this feature has already been rolled out in Hong Kong." Futu’s trading infrastructure can be adapted globally for crypto operations, reducing marginal costs while increasing profits.
In July 2025, Futu Moomoo launched cryptocurrency trading in most U.S. states, supporting over 30 mainstream spot cryptocurrency trading pairs.
Futu's All-in Move and the Crypto Transformation of Hong Kong Brokers
Futu’s full-scale push into cryptocurrency reflects the broader "crypto transformation" taking place among Hong Kong brokers.
Since Hong Kong's Virtual Asset Declaration in 2022, over the past three years, Hong Kong's crypto industry has grown into a massive ecosystem comprising more than 40 brokers, over 35 fund houses, and over 10 major banks and large accounting firms involved in virtual asset services. With Hong Kong’s stablecoin regulations officially taking effect this August, more stablecoin firms and related upstream and downstream enterprises are expected to emerge.
Cryptocurrency, as a new class of financial asset, has gained widespread recognition and acceptance within Hong Kong's financial sector. As an emerging sector, its market growth potential is difficult to estimate precisely. This not only offers smaller local brokers a chance to leapfrog ahead but also opens up new growth avenues for internet brokers.
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