OSL and Solomon Strengthen Partnership to Facilitate Hong Kong’s Innovative Spot Crypto ETFs with Direct Subscription and Redemption Methods

April 26, 2024 by No Comments

HONG KONG, April 26, 2024 — Hong Kong licensed and regulated digital assets exchange platform OSL Digital Securities (“OSL”), alongside its partner versatile securities brokerage Solomon JFZ (Asia) Holdings Limited (“Solomon”), is expanding beyond their existing omnibus brokerage model. This advanced partnership now includes comprehensive advisory and operational support, specifically tailored to facilitate the in-kind subscription and redemption processes essential for the successful deployment and management of Hong Kong’s first Spot Crypto ETFs, ready to be launched soon. This enhancement of the partnership allows Solomon to play a key role as a participating dealer, facilitating these in-kind transactions that enable investors to subscribe to or redeem ETF shares directly with the underlying digital assets. OSL’s robust expertise in secure digital asset custodian and regulated trading services, alongside Solomon’s adept handling of financial dealing, ensures that this ETF not only adheres to the highest standards. OSL – the first virtual asset trading platform and sub-custodian for two out of three approved spot crypto ETFs in Hong Kong Patrick Pan, Chairman of the Board & CEO of OSL, addressed, “The introduction of these ETFs marks a significant enrichment of Hong Kong’s financial landscape, enhancing investment options and market liquidity which are crucial for our economy’s dynamism. At OSL, leveraging our status as the only publicly listed digital assets company in Hong Kong, we ensure leadership through stringent regulatory compliance and a proven track record, evidenced by our successful SOC 2 Type 2 audit. We’re proud to support this pivotal financial innovation.” Solomon – the first batch of SFC-approved participating dealer to support physical in-kind subscription and redemption for spot crypto ETFs in Hong Kong Thomas Tam, Chief Executive Officer of SOLOWIN, commented, “We are excited to play a crucial role in the launch of the first spot Bitcoin and Ethereum ETF in Hong Kong. The approval, coming just three months after the U.S. introduced similar ETFs which attracted around US$12 billion in investments, marks a significant regulatory advancement for Hong Kong’s aspirations to be a global virtual asset hub. And the introduction of the in-kind subscription mechanism that allows investors to buy into the ETF using Bitcoin or Ethereum directly is viewed as a transformative vehicle for channeling significant investment into the virtual asset space.” For more information about OSL, visit: group.osl.com CONTACT: Press enquiries media@osl.com