Original author: 1912212.eth, Foresight News
On the morning of May 7, Twitter user FORAB broke the news that Futu Securities was testing a token recharge function that supports Bitcoin, Ethereum, and USDT. Just a few hours later, it was officially confirmed. Hong Kong financial technology giant Futu Securities International (Hong Kong) Co., Ltd. (hereinafter referred to as Futu Securities) announced that its core trading platform Futu Niu Niu officially launched BTC, ETH and USDT recharge services. After qualified investors complete the recharge and trading of cryptocurrencies through the one-stop trading platform Futu Niu Niu to obtain funds, they can invest in more asset categories or withdraw cash.
Hong Kong VATP license was approved in January this year
Futu Holdings Limited is a Hong Kong-based fintech company founded in 2012 that is committed to providing digital securities brokerage and wealth management services through technological innovation. According to its official data, as of Q4 2024, Futu had more than 34 million registered users worldwide and approximately 2.5 million paying users, a year-on-year increase of 39.1%. The Hong Kong market performed particularly strongly, with Futu Niu Niu users covering more than 50% of the local adult population. In 2024, Futus total revenue increased by 86.8% year-on-year, and non-GAAP adjusted net profit increased by 105.4%.
Li Hua, founder and CEO of Futu Securities
Futu Securities is its core subsidiary. As a licensed securities firm in Hong Kong, it holds licenses No. 1 (Securities Trading), No. 4 (Providing Advice on Securities) and No. 9 (Asset Management) issued by the Securities and Futures Commission (SFC) of Hong Kong, and is qualified to legally conduct securities trading and related financial services. These licenses ensure that Futus securities business in Hong Kong is strictly regulated and complies with compliance requirements such as anti-money laundering and knowing your customer. However, cryptocurrency-related services involve virtual asset trading platform (VATP) supervision, which requires an additional application for a VATP license.
As early as 2021, Futu revealed its interest in the crypto market. According to Cailianshe, Robin Li Xu, vice president of Futu Holdings, said that year that the company had applied for digital currency-related licenses in Hong Kong, the United States and Singapore, and planned to enter crypto trading, but the progress was slow. Hong Kongs supervision of crypto assets has gradually opened up in recent years. In 2023, the Hong Kong Securities Regulatory Commission launched the VATP licensing system, allowing compliant platforms to provide cryptocurrency trading services to retail investors. It is worth noting that PantherTrade, a wholly-owned subsidiary of Futu Holdings, applied for a VATP license that year. It was not until the end of January 2025 that the Hong Kong Securities Regulatory Commission approved the VATP license for PantherTrade.
The cryptocurrency top-up service launched by Futu Securities allows ordinary users to top up Bitcoin (minimum 0.0002 BTC) and Ethereum (minimum 0.001 ETH) to their accounts through their personal wallets, and the funds are usually received within 1 hour; professional investors can top up USDT, using a designated network and free of charge. The launch of this function allows Futu NiuNiu users to seamlessly manage cryptocurrencies and traditional assets on the same platform, from Hong Kong stocks, US stocks to Bitcoin and ETFs, greatly improving the flexibility of their investment portfolios.
Futus move is not an isolated case, but part of the global financial technology platforms embrace of cryptocurrency. Robinhood in the United States is a vivid example. This platform, which subverts traditional brokerages with zero commission, launched Bitcoin and Ethereum trading services as early as 2018, and then gradually expanded to assets such as Dogecoin and Litecoin. Robinhoods crypto business quickly became one of its revenue pillars. According to the 2023 financial report, crypto trading revenue accounted for nearly 20% of its total revenue. Similarly, global investment platforms such as eToro have also made cryptocurrency their core business, attracting a large number of young investors. Futu Securities move was obviously inspired by these pioneers. The launch of its crypto recharge service is not only an inevitable choice for market competition, but also a keen response to changes in user needs.
Lower the threshold for stock trading users to buy coins
For traditional stock traders of Futu NiuNiu, the launch of the cryptocurrency recharge service is quite attractive. First of all, it enriches the diversity of the investment portfolio. Stock traders are accustomed to investing in traditional assets such as Hong Kong stocks, US stocks, and ETFs, but cryptocurrencies, as alternative assets with high growth potential, have attracted the attention of global investors in recent years. In 2024, the price of Bitcoin once exceeded $100,000, showing strong market demand. Futu allows stock traders to recharge BTC, ETH, and USDT through the same account, directly participate in the crypto market, without the need to register an additional crypto exchange account, and reduce the learning and operation threshold.
Secondly, Futus crypto service provides stock traders with new tools to hedge market risks. The stock market and crypto market often show different volatility cycles. For example, when Bitcoin plummeted in 2021, some stock markets remained stable. Stock traders can diversify their investment risks by allocating a small amount of crypto assets, especially to capture the rising opportunities in the crypto market when the traditional market is sluggish.
USDTs top-up function provides professional investors with a stable capital transfer station, facilitating flexible switching between the stock market and the crypto market. Compared with the successful cases of platforms such as Robinhood attracting young investors through crypto trading, Futu NiuNius stock trading users are more likely to be young and high-net-worth, and they are more receptive to cryptocurrencies. This function of Futu is expected to further enhance the platforms stickiness and attract users to increase their account funds.
Diversified investment for cryptocurrency traders
For users who are keen on cryptocurrency trading, Futu Securities recharge service also brings certain appeal. First of all, Futu NiuNiu platform supports Bitcoin, Ethereum and USDT recharge, covering the mainstream assets in the crypto market. Bitcoin and Ethereum, as the top two cryptocurrencies in terms of market value, have high liquidity and market recognition; USDT, as a stable currency, provides value anchoring for transactions and reduces volatility risks.
Secondly, Futus brand endorsement and compliance provide higher security for cryptocurrency traders. Compared with the asset losses caused by technical loopholes or hacker attacks in some crypto exchanges, Futu, as a licensed broker, has significantly reduced capital risks by relying on mature trading systems and strict regulatory requirements. For example, the US platform Robinhood attracts a large number of users through crypto trading, and its compliance and technical stability are key factors. Futus similar positioning is expected to replicate this success and attract cryptocurrency traders who are sensitive to security and transparency.
In addition, Futu NiuNius one-stop platform allows cryptocurrency traders to quickly switch between crypto assets and traditional financial assets. Users can manage Bitcoin and Hong Kong and US stocks in the same account, eliminating the hassle of cross-platform transfers and making fund utilization more efficient. This seamless connection is particularly attractive to cryptocurrency traders who seek diversified investments. Some cryptocurrency traders also pay attention to US and Hong Kong stock opportunities. When the cycles of the cryptocurrency and stock markets are mismatched and rise and fall respectively, it is also convenient for investors to flexibly grasp the fluctuations and seize the dual opportunities of the crypto and stock markets.
However, cryptocurrency traders should note that Futu’s crypto services are currently mainly for Hong Kong and overseas users, and users in mainland China cannot participate due to regulatory restrictions. Secondly, Futu has set a professional investor threshold for USDT top-ups (proof of assets of HKD 8 million), which has led some people in the market to jokingly say that it “stuck retail investors.” The extremely high threshold makes it almost impossible for small retail investors to participate in transactions on the platform, and the number of people currently participating in top-ups is still unknown.
summary
For Futu itself, this move not only meets the needs of existing users, but may also attract new users to join and further expand its market share. From an industry perspective, Futus entry should not be underestimated. Crypto assets are accelerating into the mainstream, and the compliance operation of its traditional financial platform has also injected transparency into the crypto industry, which already lacks trust. Finally, Futus move may trigger a chain reaction. Hong Kong local brokerages such as Victory Securities already support crypto recharges. Futus joining will encourage more traditional financial institutions to follow suit and accelerate industry integration.
