Chinese online brokerage startup Futu Holdings is planning to launch cryptocurrency trading services targeting international clients from H2 2021.
Futu’s senior Vice President Robin Li Xu announced the plan during the company’s Q1 earnings call where he indicated that the product will mainly target customers in the United States, Singapore, and Hong Kong.
Xu noted that the licensing process is ongoing without revealing the nature of the crypto services. However, he clarified the company has no plans to unveil crypto operations in mainland China after authorities reiterated their stand on the legality of cryptocurrency transactions.
The announcement follows Futu’s move to open the regional headquarters in Singapore alongside investment products focused on the younger generation.
Furthermore, the decision to opt for crypto services is due to the fact that Hong Kong and Singapore accounted for 70% of a new client in the first three months of the year.
“We are encouraged by what we have achieved in Singapore so far and are confident that Singapore and the broader Southeast Asian market offers a huge runway for growth,” said Leaf Hua Li, Futu’s CEO.
Futu records growth in users and revenue
Currently, Futu is enjoying growth with at least 14 million users globally, adding 273,000 net paying clients over the last quarter.
During Q1, the company recorded a revenue of $283.6 million, an increase of 349.4% on a year-over-year basis. At the same, the trading volume hit $289 billion during the quarter.
The startup has existing partnerships with leading asset managers including Wells Fargo, Income Partners, Aberdeen Standard, and BNY Mellon.