China’s two biggest online brokerages, Beijing-based Tiger broker and Shenzhen-based Futu, are planning to expand into the global crypto trading market. As per the report, they are considering overseas crypto markets such as the US and Singapore.
These Two players will be competing straight away with global players like Robinhood and eToro. Both brokers have unveiled their new plan during earning calls in the past month. These companies have also applied for local licenses in Singapore, the U.S, and Hong kong.
The move has come amid China’s crackdown crashing crypto market over the last few weeks. Wall Street with Goldman setting up a dedicated trading desk. JPMorgan chase reportedly offering a bitcoin fund to a wealthy client.
The rising interest and participation by retail and Institutional players provide this brokerage a better opportunity to market. The management team of both was quick to point new crypto trading services only target customers outside china.
“We notice cryptocurrencies such as bitcoin have become more acceptable by mainstream investors since last year and are emerging as an asset class. Tiger’s mission is to make investing more efficient and enjoyable for investors,” said Wu Tianhua, chief executive of Tiger brokers
In Recent years Tencent backed Futu has made a big push into Hong Kong retail market. It also said it would expand into digital currency trading in the second half of this year.
Also Read: Chinese Crypto Traders Turn To OTC Platforms Despite Regulatory Scrutiny
Robin Li Xu, Senior Vice President, said:
“We’re in the process of applying for digital currency-related licenses in the US, Singapore, and Hong Kong.”
Futu noted that nearly one-fourth of a new paying client in Q1 2021 came from the U.S. and Singapore markets.
