HashKey Nears HK IPO After Clearing Exchange Hearing, Aims to Raise $500M

HashKey Holdings, Hong Kong's largest licensed cryptocurrency exchange operator, has cleared its Hong Kong Stock Exchange listing hearing, signaling a major step toward its upcoming initial public offering. The company is expected to raise up to US$500 million, with JPMorgan Chase, Guotai Haitong Securities, and Guotai Junan International acting as joint sponsors. The IPO comes amid growing regulatory clarity in Hong Kong, where the city is positioning itself as a global virtual-asset hub.

HashKey processed HK$638.4 billion in trading volume in 2024, nearly doubling from the previous year. Despite this, the company reported a net loss of over US$151 million in 2024 due to its low-fee strategy, which prioritizes market share over profitability.

The IPO is seen as a crucial opportunity to fund further expansion and infrastructure development.

HashKey has been expanding its offerings beyond spot trading, including staking, tokenization, and institutional-grade custody services. Its Bermuda-based exchange, however, has seen a sharp decline in trading volumes, dropping from US$23 billion in the first half of 2024 to just US$1.4 billion by the same period in 2025. The company attributes this to a lack of on-ramp capabilities and a strategic pullback in global marketing.

A Strategic Move Amid Regulatory Clarity

HashKey's IPO timing aligns with Hong Kong's proactive regulatory environment for virtual assets. Over the past few years, the city has introduced licensing frameworks for virtual-asset trading platforms and stablecoin issuers, creating a favorable climate for crypto firms. The government's "Digital Asset Development Policy Declaration 2.0," issued in June 2025, and the implementation of the "Stablecoin Issuer Licensing Mechanism" in August 2025 further demonstrate Hong Kong's commitment to fostering a compliant digital asset ecosystem.

The company's decision to pursue a public listing also coincides with a broader trend of crypto firms seeking public market access. In 2025, stablecoin issuer Circle and cryptocurrency exchange operator Bullish have already gone public, with more firms like BitGo and Kraken reportedly preparing IPOs. HashKey's entry into the public market could serve as a test of investor confidence in the crypto sector amid ongoing regulatory scrutiny elsewhere in the world.

Financials and Market Challenges

Despite HashKey's market dominance-accounting for more than 75% of Hong Kong's crypto trading volume in 2024-it has struggled to turn a profit. The company reported a net loss of HK$506.7 million in the first half of 2025, though this marked a narrowing from the HK$772.6 million loss in the same period the previous year. HashKey attributes its financial struggles to high upfront costs related to compliance, technology development, and infrastructure scaling.

The company's low-fee model has contributed to its market share growth but has also limited revenue. Trading fees remain under 0.1%, and diversification into higher-margin areas like tokenization and Web3 events has yet to significantly boost profits. Tokenization revenue in 2024 stood at just US$0.9 million, while Web3 events generated about US$4.8 million, a modest contribution to the company's overall financials.

What This Means for Investors

The IPO is expected to provide HashKey with much-needed capital to strengthen its infrastructure and expand its product offerings. The company plans to use proceeds to upgrade its custody systems, develop a "Crypto-As-A-Service" platform for institutional clients, and enhance cybersecurity measures. HashKey also aims to deepen its partnerships with financial institutions and expand its reach in international markets.

Investors, however, will be closely watching how the company balances growth and profitability. The crypto market remains highly volatile, with major tokens subject to sharp price swings in response to macroeconomic and regulatory factors. HashKey's business model, heavily reliant on concentrated crypto assets, faces ongoing risks from price fluctuations and regulatory shifts.

The IPO could also face challenges from broader market conditions. Hong Kong-listed crypto exchange OSL Group recently saw its shares drop, 7.6%, raising questions about investor appetite for crypto-related assets. If HashKey's IPO proceeds as planned, it could become the second publicly listed crypto exchange in Hong Kong, following OSL.

The company's ability to attract institutional and retail investors will depend on its execution post-IPO. If it can demonstrate a viable path to profitability and maintain its leadership in Hong Kong's crypto market, the IPO could mark a turning point for the firm. Otherwise, it may face the same hurdles that have plagued other crypto companies in recent years.