Original author: Zhou Zhou, Foresight News

Futu, China's largest Internet brokerage firm with 27 million registered users, is setting the first example for the encryption transformation of Chinese (Hong Kong) brokerage firms through its exploration in the Crypto field.

On the evening of August 20, 2025, with the release of Futu's second-quarter financial report, the market gained a clearer understanding of its layout and progress in the cryptocurrency business. Since officially launching its cryptocurrency trading service in August 2024, Futu has rapidly expanded its crypto business to Hong Kong, Singapore, and the United States in just one year, achieving full operations in all three regions.

In Hong Kong, Futu has been providing Crypto trading services to local residents for a year, and the VATP license it applied for may be approved for formal operations in the next six months; in Singapore, Futu Moomoo has also been providing Crypto trading services to Singaporean residents for a year, and is currently the only licensed Internet brokerage firm in Singapore to provide Crypto trading; in the United States, Futu began to launch cryptocurrency trading services in most states in the United States in June this year, supporting more than 30 mainstream cryptocurrency spot trading pairs.

Hong Kong, Singapore, the United States...Futu is trying to quickly obtain cryptocurrency operating licenses around the world to develop this new business line.

Through this year's exploration, Futu became one of the earliest and most in-depth Chinese brokerages to delve into the crypto business. During the company's Q2 2025 earnings call, a Futu executive stated, "By the end of Q2 2025, Futu's crypto-related asset balance reached approximately HK$4 billion, with a peak average daily trading volume of US$40 million."

Futu's Crypto Landscape

As global brokerages expand into cryptocurrency trading, this sector is becoming a new trend in the financial industry. For example, Robinhood, the largest online brokerage in the United States, launched cryptocurrency trading services as early as 2018, providing users with access to buy and sell Bitcoin, Ethereum, and a variety of other mainstream digital assets.

As of the second quarter of 2025, Robinhood's cryptocurrency revenue surged approximately 98% year-over-year to $160 million, while the company's total revenue was $989 million. This demonstrates that cryptocurrency has become a significant component of the revenue structure of US online brokerages like Robinhood, signaling the accelerating transformation of brokerages into cryptocurrencies.

Following the influx of US brokerages, Hong Kong brokerages are also accelerating their entry into the market. According to statistics, as many as 40 Hong Kong brokerages have successfully upgraded their "No. 1 license" to engage in virtual asset business. Among them, Futu NiuNiu and Shengli Securities are among the leaders.

Futu's layout in Crypto is very extensive. Just in the Hong Kong market, it involves: the upgrade of No. 1 license (Hong Kong users can buy Bitcoin, Ethereum, Solana and other cryptocurrencies on the Futu App), the application of VATP license (which can meet the needs of both retail users and institutional clients), Hua Xia Fund's tokenized money fund (RWA and cryptocurrency-based wealth management), stablecoins (Futu participated in the stablecoin business layout by investing HK$440 million in Airstar Bank), etc.

The VATP license, in particular, has been a hot topic in the market. Once approved, it will mean Futu will have a compliant cryptocurrency exchange operating in Hong Kong. A Futu executive stated during the company's Q2 earnings call, "As an entry point for cryptocurrencies, we believe that in addition to spot trading, the exchange will have significant potential for monetization through services like staking and derivatives."

"Obtaining the VATP license will not only allow us to do business with retail users and save us some upstream clearing and settlement costs, but will also allow us to provide upstream services to institutional clients such as securities firms," said the executive.

Therefore, although the current Crypto business accounts for less than one percent of Futu's overall business, it has received considerable attention within Futu. In the Q2 2025 earnings call, both institutional investors such as Morgan Stanley and Futu executives frequently mentioned the Crypto business.

With so many schools of thought, what are Futu’s advantages?

Currently, Hong Kong's crypto market has seen a number of emerging companies, including HashKey, OSL, Victory Securities, and Tiger Brokers. According to incomplete statistics, there are already over 50 companies providing cryptocurrency services to retail users.

So, what are Futu’s advantages?

First, Futu's user base is one of its biggest advantages in entering the crypto space. Futu has 27.12 million registered users, and the number of "clients with assets" has increased 41% year-over-year to 2.88 million. And this number continues to grow. During the Q2 2025 earnings call, an executive stated that Futu added 460,000 new "clients with assets" in the first half of 2025.

Secondly, Futu's revenue and profitability are providing a continuous boost to its new business. According to its Q2 2025 financial report, Futu achieved revenue of HK$5.3 billion, a year-on-year increase of approximately 70%, and net profit of HK$2.6 billion, a year-on-year increase of 113%. Futu also stated that it will further increase its investment in encryption and AI products.

Futu's internet roots are highly compatible with the cryptocurrency business. As an online brokerage, Futu excels at leveraging new technologies and exploring new assets, thereby attracting more retail users from traditional brokerages, achieving both growth in user base and business innovation. Robinhood's success in the cryptocurrency sector also demonstrates the potential for online brokerages to grow in this area.

In addition, Futu has long been laying out its global market presence through stock trading, laying the foundation for the future growth of its Crypto business.

A Futu executive said: "The Hong Kong and Malaysian markets contributed more than half of the new clients with assets in the second quarter. Other client growth came mainly from Singapore, the United States and Japan."

It is understood that outside of Futu Hong Kong's main market, Singapore and the United States are the largest overseas markets, followed by the rapidly expanding Malaysia and Japan, while Australia and Canada have also shown steady growth momentum.

"We will also launch deposit and withdrawal functions in Singapore and the United States in the second half of the year. This function has already been launched in Hong Kong." Futu's trading framework can be adapted to crypto businesses around the world, allowing the marginal cost effect to decrease and profits to increase.

In July 2025, Futu Moomoo launched cryptocurrency trading in most states in the United States, supporting more than 30 mainstream cryptocurrency spot trading pairs.

Behind Futu's all-in move: Hong Kong brokerage firms' crypto transformation

Futu's full entry into cryptocurrency is also a microcosm of the "crypto transformation" of Hong Kong securities firms as a whole.

In the three years since the 2022 Hong Kong Virtual Asset Declaration, Hong Kong's crypto industry has grown into a massive industry with over 40 securities firms, over 35 fund companies, and over 10 major banks and accounting firms involved in the virtual asset business. With the official implementation of Hong Kong's stablecoin policy in August of this year, it is foreseeable that a number of stablecoin companies and upstream and downstream enterprises will emerge in Hong Kong.

Cryptocurrency, as a new type of financial asset, has gained widespread recognition and acceptance within Hong Kong's financial industry. As an emerging sector, its incremental market value is difficult to predict. This not only provides opportunities for small and medium-sized brokerages in Hong Kong to overtake competitors, but also opens up new growth opportunities for online brokerages.