OSL Strengthens Partnership with Solomon JFZ Ahead of Hong Kong ETF Launch

In preparation for the upcoming launch of crypto ETFs in Hong Kong, OSL Digital Securities (OSL), one of the prominent virtual asset service providers in the industry, has enhanced its partnership with Solomon JFZ, a securities brokerage firm.

According to an announcement on Friday, both companies have strengthened their initial collaboration, which was based on an omnibus brokerage agreement, to a more comprehensive arrangement to include advisory and operational support.

Solomon to Serve as ETF Participating Dealer

The expanded partnership is designed to facilitate the in-kind subscription and redemption processes crucial for the successful rollout and management of Hong Kong’s first spot Bitcoin (BTC) and Ethereum (Ether) ETFs.

Earlier this week, Coinspeaker reported that the ETFs are set to commence trading as soon as April 30, 2024.

As one of the participating dealers approved by the Hong Kong Securities Futures Commission (SFC) to back physical in-kind subscription and redemption for spot crypto ETFs, Solomon will serve in this capacity as a participating dealer for OSL, facilitating in-kind transactions for the upcoming product offerings.

These transactions will enable investors to directly subscribe to or redeem ETF shares using the underlying digital assets without the use of traditional fiat currencies such as the Hong Kong dollar (HKD).

“We are excited to play a crucial role in the launch of the first spot Bitcoin and Ethereum ETF in Hong Kong,” said Solomon’s CEO Thomas Tam.

Tam further stated that the introduction of the in-kind subscription mechanism will bring about significant changes to the country’s digital asset sector. He also believes that the mechanism will help attract investors into the Hong Kong market.

Unlocking Financial Opportunities

On the other hand, OSL chairman of the board and CEO Patrick Pan said in a statement that the approval of the crypto ETFs in Hong Kong is seen as a “major enhancement” for the country’s financial economy.

The OSL boss said the move will broaden investment opportunities and increase market liquidity, which is essential for keeping the economy vibrant. He further disclosed that the company is ready to see these new investment products kick off in Hong Kong, adding that OSL will support the funds.

Pan said the exchange is committed to adhering to strict regulatory standards in Hong Kong while providing the new product offerings to its customers.

“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,” he said.

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