Futu wins SFC approval for securities-based crypto trading funds in Hong Kong
Futu Securities has received approval to expand its Type 1 licensed operations in Hong Kong, allowing eligible clients to use securities-backed financing in physical asset trading.
Summary
- Futu Securities has received SFC approval to provide financial services for commodity trading to eligible clients in Hong Kong.
- Clients can now use credit obtained through conventional financing for cryptocurrency trading securities.
- The approval expands Futu’s crypto offering as Hong Kong continues to build its regulatory framework for digital assets.
According to local media, the Securities and Futures Commission of Hong Kong has approved the development of Futu Securities’ type 1 license (securities trading), which allows the company to issue financial services for commodity trading to qualified investors in the city.
Under this new system, clients can use traditional securities as collateral to obtain financing for cryptocurrency transactions. Credit facilities obtained through standard securities margin accounts were not yet available for crypto trading, but the authorization removes that limitation and allows those funds to be used in the physical asset market.
The launch makes Futu the first brokerage in Hong Kong to offer such a service, according to the report. Expanding financing capabilities to digital asset trading, the company has added another crypto-related product to the stock platform that already supports stocks, exchange-traded funds, options, currencies, bonds, and cryptocurrencies.
The monetary expansion follows the crypto push
Over the years, Futu has gradually added digital goods services to its platform. In May 2025, the brokerage launched crypto deposit services for Bitcoin, Ethereum, and Tether, allowing eligible investors to deposit and trade physical assets through its trading system.
Meanwhile, Futu said users can move between cryptocurrencies and traditional investment products from a single account.
Crypto trading itself was launched in 2024, after the company received a securities license upgrade that allowed it to offer virtual asset services to both retail and professional investors. The company has positioned its platform as a place where users can access both traditional and digital assets through the same interface.
Attention has also turned to how collateral can be used in crypto-related financing. When the SFC issued a circular in February that relaxed the restrictions on physical assets being accepted as collateral, the regulator said that physical asset collateral will remain subject to 100% holdings under the Securities and Futures (Financial Services) Rules until the revised capital requirement comes into force.
According to the SFC circular cited in the report, that treatment can create operational challenges for firms that want to use physical assets directly as collateral for margin because current rules reduce the financial efficiency of those assets.
The approval comes as Hong Kong continues to expand its regulatory framework for digital assets. In May 2026, the Financial Services and Treasury Bureau and the SFC finalized the conclusions of the consultation on proposed rules for licensing physical asset advisory and portfolio management services, extending oversight beyond trading platforms, accommodation providers, and stablecoin issuers.
Authorities said the proposed framework would apply common financial regulatory standards to physical asset transactions, and legislation is expected to be submitted to the Legislative Council in 2026.
