BC Technology Group's digital asset revenue reached RMB 151 million in 2020, an increase of 111% year-on-year.
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BC Technology Group's digital asset revenue reached RMB 151 million in 2020, an increase of 111% year-on-year.
The OSL digital asset platform performed exceptionally well, becoming the Group's core business and largest revenue contributor, accounting for 70% of the Group's total income—up significantly from 44% in the same period in 2019.
Navigating Web3 tides with focused insightsOn March 30, BC Technology Group (00863.HK), a leading Asian digital asset and fintech company, released its full-year 2020 financial results. The OSL Digital Asset Platform under BC Technology Group experienced rapid business growth in 2020, with annual revenue rising to RMB 151 million, an increase of 111% compared to RMB 71.6 million in the same period last year.
BC Technology Group's digital asset exchange provides institutional and professional investors with services including digital asset prime brokerage, exchange trading, digital asset custody, SaaS solutions, and product offerings. The company currently operates its digital asset and blockchain technology businesses primarily in Hong Kong and Singapore.
With continuous optimization and upgrading of its business structure, the OSL Digital Asset Platform has stood out as the Group’s core business and largest revenue contributor, accounting for 70% of total Group revenue—up significantly from 44% in 2019.
In 2020, the OSL platform also delivered strong performance in ecosystem expansion and user metrics. As of year-end, total assets on the OSL platform reached RMB 2.6 billion, representing a 487% year-on-year increase. Monthly trading volumes on the OSL Exchange consistently set new records, with total annual trading volume reaching RMB 149 billion—an increase of 228% year-on-year. The number of active clients on the platform rose by 130% compared to the previous year, while institutional client trading accounted for a substantial 93% of total trading volume.
The Group also leverages a B2B2C model to deliver customized SaaS technology solutions for clients such as banks and other large financial institutions, incorporating any combination of OSL’s digital asset financial services—a unique market distribution strategy. In 2020, the Group’s SaaS business generated revenue of RMB 8.8 million, up 132% year-on-year.
Driven by these factors, BC Technology Group’s total revenue increased by 32% year-on-year to RMB 217 million. Notably, the Group’s adjusted EBITDA reached approximately RMB 5 million, turning positive from a loss of RMB 89 million in the prior year—a significant milestone.
Hugh Madden, CEO of BC Technology Group, said: “Despite the challenging global environment shaped by the pandemic and geopolitical tensions, 2020 was a highly rewarding year for BC Technology Group and the OSL Digital Asset Platform. OSL Digital Securities received its Type 1 and Type 7 licenses from the Securities and Futures Commission (SFC) of Hong Kong. Global institutions and professional investors have rapidly embraced digital assets, while Bitcoin and Ethereum prices continue to reach new all-time highs in price and market capitalization. Additionally, compliant digital securities—such as security token offerings—are beginning to take shape, positioning us for a new wave of growth. As a pioneer and licensed platform in Hong Kong, we believe that as the digital asset ecosystem grows exponentially and more regulated peers enter the market, our market share will continue to expand—particularly in the area of tokenized securities.”
Driving OSL to Become the World’s First Licensed Digital Asset Platform
Committed to delivering best-in-class digital asset services, BC Technology Group sets global benchmarks in innovation, performance, security, and compliance. In 2020, the Group achieved multiple operational breakthroughs by building a secure and compliant digital asset exchange and providing market-leading digital asset services.
One key milestone was the launch of OSL Exchange services in March 2020. Later, in December 2020, its wholly-owned subsidiary OSL Digital Securities became the first firm to receive a virtual asset license from the Hong Kong Securities and Futures Commission. With this achievement, OSL became the world’s first digital asset platform for institutional and professional investors to be licensed by a securities regulator, audited by one of the Big Four accounting firms, publicly listed, and covered by digital asset wallet insurance. Also in December 2020, OSL announced it would provide certain technical services to DBS Bank, marking a significant integration with traditional finance and banking.
Beyond Hong Kong, BC Technology Group is actively advancing its regulatory compliance efforts in Singapore. Under Singapore’s Payment Services Act, OSL formally submitted its application to the Monetary Authority of Singapore (MAS) for a license as a Digital Payment Token Service Provider in the second half of 2020. Additionally, the Group remains optimistic about the prospects of its SaaS products, which will remain a strategic focus in the coming months and years.
Sheng Zhang, CFO of BC Technology Group, commented: “Thanks to regulatory progress in digital assets and growing institutional participation in 2020, we have successfully established ourselves as one of the world’s leading providers of institutional-grade digital asset investment solutions and services for professional investors. By serving top-tier financial institutions like DBS Bank, we have strengthened the scalability of our platform and SaaS technology solutions—demonstrating that broad adoption of digital assets by traditional finance is now an inevitable trend.”
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