First regulated crypto exchange IPO opens books in Hong Kong

The company is offering 240.6 million shares at a price range of HK$5.95 to HK$6.95, with final pricing set for December 16 and trading on the Hong Kong Stock Exchange scheduled to begin on December 17, 2025, subject to market conditions.

According to the prospectus, around 24.1 million shares are allocated to Hong Kong retail investors, with the remaining shares placed globally, giving the IPO both a local and international investor base. At the top of the range, HashKey would raise up to HK$1.67 billion and reach a valuation of roughly HK$19 billion.

HashKey positions itself as a regulated digital asset ecosystem rather than a single trading venue, combining an exchange, over-the-counter desk, custodial services, tokenization infrastructure and asset management products within Hong Kong’s onshore framework.

The group operates what it describes as Hong Kong’s largest licensed crypto exchange by trading volume and was among the first firms approved under the city’s dedicated virtual asset trading platform (VATP) regime, which went live in 2022. Research cited in the filing estimates that HashKey accounts for more than 75% of Hong Kong’s onshore digital asset trading volume.

Under the same regime, Hong Kong regulators have so far granted licences to 11 platforms, including OSL Group, which is currently listed in the city; HashKey’s debut would add a second listed crypto exchange operator to the market.

If the IPO prices at the top of the range, HashKey expects net proceeds of about HK$1.43 billion after fees and expenses. The prospectus states that funds will go towards new regulated products, upgrades to its custody and trading infrastructure, on-chain services and hiring additional engineering and research staff, as well as general corporate purposes.

A large share of the planned spending is earmarked for expanding derivatives and yield products, building shared liquidity across venues and reinforcing risk management and compliance systems in line with Hong Kong’s virtual asset rules. Another portion will support on-chain initiatives such as “crypto-as-a-service” offerings for institutions, staking infrastructure and further development of HashKey Chain, the company’s Layer 2 network for tokenized real-world assets.

HashKey’s business is split into three main segments: transaction facilitation, on-chain services and asset management. Transaction facilitation covers the core exchange, OTC trading, fiat on- and off-ramps, foreign-exchange conversion and institutional services, while on-chain services include staking, tokenization and technical infrastructure for protocols. Asset management spans venture investments and secondary-market products such as exchange-traded funds and actively managed crypto funds.

The prospectus highlights rapid top-line growth. Revenue rose from about HK$129 million in 2022 to roughly HK$208 million in 2023, then climbed to around HK$721 million in 2024 as trading volumes and on-chain activity scaled. In the first half of 2025, HashKey generated an additional HK$284 million in revenue.

At the same time, the filing shows the company remains loss-making. Adjusted net loss widened to about HK$545 million in 2024, driven by higher operating costs, spending linked to its HSK token and increasing compliance expenses across multiple jurisdictions. In the first half of 2025, compliance costs alone are estimated at around HK$130 million.

HashKey’s expansion has relied heavily on external financing. From 2022 to 2024, net cash outflows from operating activities totaled roughly HK$143 million, HK$274 million and HK$183 million, with a further HK$266 million outflow in the first half of 2025. Over the same period, the company recorded strong inflows from financing activities, including convertible bonds, preferred shares and related-party loans, bringing net debt to about HK$1.58 billion as of June 30, 2025.

The prospectus also points to pressure on profitability from shifting revenue mix. Overall gross margin declined from 97.2% in 2022 to 65.0% in the first half of 2025, as lower-margin transaction facilitation services grew as a share of income. The HSK token, which HashKey has committed to repurchasing with 20% of future net profit, is described as having a low usage rate so far, with most tokens not yet used for on-chain activity.

HashKey’s listing arrives as Hong Kong seeks to revive its role as a fundraising centre and differentiate itself as a regulated hub for digital assets while mainland China maintains a broad ban on crypto trading. Authorities have introduced a licensing framework for virtual asset trading platforms, issued guidance for digital-asset intermediaries and advanced legislation for stablecoins, aiming to channel activity into supervised venues.

The IPO will test investor appetite for a regulated crypto business that is deeply tied to Hong Kong’s policy direction and to regional institutional demand. The deal comes amid renewed activity on the city’s capital markets, where officials are balancing efforts to attract listings from digital-asset firms with tighter scrutiny of IPO applications from issuers and their banks.

The planned listing also sits against competition from other regional centres, including Singapore and Dubai, which are offering their own regimes for digital-asset firms. Hong Kong’s regulators have so far approved licences for a limited number of platforms and have yet to attract global giants such as Binance or Coinbase, leaving room for locally rooted exchanges like HashKey and OSL to define the contours of the regulated market in the city.

Founded in 2018 and backed by China’s Wanxiang Group, HashKey has expanded from a regional trading venue into a multi-jurisdictional platform with operations across Hong Kong, Singapore, Japan, Bermuda, Ireland and the United Arab Emirates. Beyond spot trading, it offers custody, institutional brokerage, tokenization projects and Web3 venture investments, and has participated in initiatives such as launching tokenized money market ETFs in Hong Kong together with Bosera Asset Management.

Industry analysts and policymakers are expected to watch the order book and aftermarket performance closely as an indicator of how investors value a heavily regulated, infrastructure-focused crypto exchange at this point in the market cycle, and of how far Hong Kong’s virtual asset strategy can go in attracting more listings from digital-asset companies in the region.