Capital markets News

HK digital asset firm BC Group raises $36m

Stock market exchange finance

Today, Hong Kong-listed digital asset firm BC Group announced it raised $36 million in a share placement. 

BC Group has developed a digital asset platform OSL. It offers software as a service for investor onboarding, as well as brokerage, custody, and an exchange for digital assets. OSL’s revenues in the six months ending June 30, 2019, are almost five times the figure for the second half of 2018, although the firm didn’t clarify the scale of the starting figure. 

“Licensing frameworks in every major jurisdiction are rewarding only the strongest and most professional operators, and these firms will continue to capture market share from unlicensed players,” said Hugh Madden, CEO of BC Group. 

OSL was one of the first to apply to the Hong Kong Securities and Futures Commission’s (SFC) digital asset licensing framework. The SFC had announced the changes back in November 2019 and implemented new standards and regulations for digital asset exchange operators. 

With regulatory clarity, investors and asset managers were able to invest their money in the new asset class with more confidence. CEO Madden said the newly raised capital would be used for developing technology and ensuring compliance.

“Asia is at the centre of growth in digital assets and blockchain technology for innovation and adoption,” added Madden. “With its Hong Kong headquarters, global footprint and robust investor and client base, OSL is exceptionally positioned to be the world’s preeminent digital asset platform.”

Digital assets are slowly gaining ground alongside traditional investments.

Last week, Swiss private bank Julius Baer said it is extending the range of digital asset services for its customers. The bank has a partnership with Swiss FINMA registered SEBA Bank.

Meanwhile, Boerse Stuttgart is working with Japan’s SBI Group to develop a digital asset ecosystem in Europe and Asia. The stock exchange operator launched the Boerse Stuttgart Digital Exchange (BSDEX) in collaboration with Axel Springer and 

Several incumbents have an eye towards tokenizing stocks as digital assets. Swiss Stock Exchange owner SIX has launched a prototype of its digital asset exchange, and recently invested in tokenization firm daura, a unit of Swisscom. 

Swisscom, now a SIX partner, previously had a relationship with Deutsche Boerse for digital assets.