In a significant development, Hong Kong's OSL has secured a $300M investment to offer cryptocurrency users a more reliable and secure service, just ahead of the implementation of stablecoin regulations.
In a significant move, Hong Kong's first licensed digital asset exchange, OSL Group, is raising HK$2.36 billion (approximately US$300 million) through a new share issuance. The funds will be primarily used to fuel acquisitions, global expansion, and a major push into stablecoin and payment infrastructure within Asia's blockchain market.
The fundraising comes ahead of the implementation of Hong Kong's stablecoin bill, which is set to take effect next week. The bill introduces a licensing framework for fiat-referenced stablecoins issued to the public in Hong Kong. This strategic alignment with regulatory developments could spur growth in blockchain-based payment infrastructures across Asia.
OSL Group's CEO, Chung, believes the company is taking advantage of its listed status to raise capital and capture growth. All new shares across the deal are priced at HK$14.90, a 15.3% discount to Thursday's close. Trading was halted on Friday, in line with listing rules. The stock last closed at HK$17.14 (US$2.20) on July 25.
The company aims to allocate around HK$700 million (30% of the proceeds) to global business initiatives that include stablecoin and payment solutions, critical components for broadening the adoption of digital assets in the region's financial ecosystem. OSL's vision is "a world where every person and business has trusted access to crypto."
Jakob Kronbichler, CEO of Clearpool, shares a similar view, highlighting stablecoins' growing role in capital and credit markets. Stablecoins, as per Kronbichler, have evolved into core financial infrastructure for payments, liquidity, and capital movement. They serve as a bridge for broader digital asset use cases, including settlement, tokenization, and on-chain liquidity.
Institutions are turning to stablecoin infrastructure to streamline credit, funding, and other financial services beyond payments. Giorgia Pellizzari, head of custody at Hex Trust, a licensed firm in Hong Kong, sees a need for stablecoins that meet regulatory standards and integrate with existing financial infrastructure. Hex Trust, too, has stablecoin development on its roadmap.
The market sentiment is that Hong Kong's regulatory clarity is driving a shift from experimentation to execution. OSL shares have climbed nearly 88% since late January, reflecting investor confidence in the company's strategic direction.
OSL expects to complete the share issuance by mid-August, pending regulatory approval. The company's expansion into stablecoin and payment infrastructure is expected to boost blockchain adoption and digital asset integration in Asia's financial markets.
In conclusion, OSL Group's fundraising move positions the company to strengthen its role as a trusted gateway to cryptocurrency, especially as regulatory frameworks evolve and stablecoins gain traction in Asia. The capital infusion supports OSL’s vision of providing reliable and regulated access to crypto payments and stablecoins, which can enhance financial inclusion, cross-border payments, and digital asset usability.
- OSL Group, the first licensed digital asset exchange in Hong Kong, is raising HK$2.36 billion to fuel acquisitions, global expansion, and a major push into stablecoin and payment infrastructure in Asia's blockchain market.
- The company aims to allocate around HK$700 million to global business initiatives that include stablecoin and payment solutions, critical components for broadening the adoption of digital assets in the region's financial ecosystem.
- Stablecoins, as per Jakob Kronbichler, CEO of Clearpool, have evolved into core financial infrastructure for payments, liquidity, and capital movement, serving as a bridge for broader digital asset use cases.
- Institutions are turning to stablecoin infrastructure to streamline credit, funding, and other financial services beyond payments, and Hex Trust, a licensed firm in Hong Kong, has stablecoin development on its roadmap.
- The market sentiment is that Hong Kong's regulatory clarity is driving a shift from experimentation to execution, with OSL shares having climbed nearly 88% since late January, reflecting investor confidence in the company's strategic direction.
