Hashkey Global, the crypto group’s latest exchange, aims to expand outside its native Hong Kong and take on Coinbase’s international exchange.
Crypto service provider HashKey Group has joined rival Coinbase in launching a global crypto exchange based out of Bermuda called HashKey Global.
In an April 8 interview with Bloomberg, Hashkey Global managing director Ben El-Baz said that after HashKey saw Coinbase score a Bermuda license to operate its international exchange, it “looked at all the different options, and we found that to be a very, very suitable and good regulatory regime for us to expand from.”
He added that after FTX collapsed in 2022, exchange users now “better understand what counterparty risk looks like for exchanges” and believed there was a gap for HashKey Global to combine the “user experience and product experience” of Binance and the “regulatory and safety back end” of Coinbase.
“Our goal long-term within the next five years is we want to be the largest globally compliant exchange in the world.”
El-Baz added that Hashkey Global’s goal is to “surpass [the volume of] what other competitors have been doing in that jurisdiction,” namely Coinbase International, which reported a 24-hour derivatives volume of $539.4 million
Unlike its Hong Kong-based counterpart, which was the first to win a license to operate in the region, HashKey Global won’t serve Hong Kong, China, the United States and a host of other regions.
El-Baz speaking on Bloomberg’s The China Show. Source: Bloomberg
In January, the Hong Kong-based crypto exchange hit so-called unicorn status after raising nearly $100 million in a Series A funding round at a pre-money valuation of over $1.2 billion.
The exchange said the funds would be put toward its business arms, which include asset management, a blockchain node validation service, a tokenization service and a Web3 incubation arm.
Over the next six months, HashKey Global will offer spot and futures trading, staking services, a project launchpad and will “have liquidity providers and market makers who are there on day one to ensure that the market is deep enough,” according to El-Baz.
El-Baz was tight-lipped when asked how much money HashKey fronted for its new exchange effort, only saying that it believed it was “adequately capitalized” and that Bermuda has a “very strong awareness of the type of capitalization requirements that are needed for licensed institutions.”
The exchange is, at launch, crypto only. It has 20 cryptocurrencies trading in Tether pairs including Bitcoin, Ether, USD Coin and Dogecoin.
HashKey Global is a digital asset trading platform operated by HashKey Bermuda Limited under a Type F license granted by the Bermuda Monetary Authority. This information does not constitute an offer, solicitation, or recommendation for any investment product. Investing and trading virtual assets involve risks. HashKey Global does not service users from Hong Kong, United States, Mainland China and certain other jurisdictions in compliance with laws and regulations. Certain services, features, and campaigns may not be available in your jurisdiction.
RISK WARNING ABOUT HSK: Please be aware that HSK is not currently listed on any exchange and there is no guarantee that it will be listed in the future. As a result, HSK presently has no established market value. The timeline for the potential listing of HSK remains uncertain. In the event that HSK is successfully listed, it may be subject to various trading restrictions in accordance with applicable regulations and laws. These restrictions may include, but are not limited to, limiting the trading of HSK solely to eligible professional investors in select locations and subject to regulatory approval. The value of HSK is subject to substantial risk and may diminish or fluctuate significantly in response to various market conditions and other factors beyond HashKey Global’s control. HashKey Global and its affiliates make no warranties, express or implied, in relation to HSK or any rewards and disclaims any liability relating thereto.
