HashKey’s Risky IPO: Hong Kong Takes Its First Step into Crypto

HashKey Moves Closer to Landmark Hong Kong IPO

HashKey Holdings Limited has taken a significant step toward its long-awaited public debut by passing the listing hearing with the Hong Kong Stock Exchange (HKEX) on December 1, 2025. This milestone brings the company closer to becoming Hong Kong’s first major crypto exchange to go public. As the operator of the city’s largest regulated digital asset trading platform, HashKey reported a trading volume of US$81.9 billion in 2024. Despite generating HK$721 million in revenue, the company continues to operate at a net loss.

By August 2025, HashKey’s financial reserves included HK$1.657 billion in cash and HK$592 million in cryptocurrencies such as Bitcoin, Ethereum, and various stablecoins.

IPO Details and Financial Performance

The upcoming IPO could raise as much as $500 million, with JPMorgan Chase, Guotai Junan International, and Guotai Haitong Securities acting as joint sponsors. The capital raised is earmarked for technology enhancements, expanding into new markets, and general business needs. However, HashKey’s financial health has raised concerns, as net losses reached HK$506.7 million in the first half of 2025, down from HK$772.6 million during the same period the previous year. Analysts attribute these losses to substantial investments in growth, compliance, and technology, which have outpaced revenue gains despite robust trading activity.

Hong Kong’s Crypto Ambitions and Regulatory Landscape

HashKey’s strategy is closely tied to Hong Kong’s ambitions as a digital asset hub. The city’s regulatory framework, introduced in 2024, has established Hong Kong as a proving ground for crypto innovation, especially as mainland China maintains strict prohibitions on digital asset trading. According to EY’s 2025 IPO report, Hong Kong’s market has shown remarkable strength, with HKEX raising US$36 billion and the combined share of Chinese mainland and Hong Kong IPOs rising to 33% globally. New rules on pricing and allocation, including a 35% clawback limit and lock-in requirements, have bolstered investor trust, resulting in only 17% of IPOs debuting below their issue price.

Mixed Reactions and Market Outlook

Opinions are split regarding HashKey’s future. Supporters believe the IPO will provide crucial funding to accelerate growth and reinforce its leadership in the regional crypto sector. Skeptics, however, question whether the company’s business model can withstand ongoing high costs related to expansion and regulatory compliance. Kenny Ng Lai-yin, a strategist at Everbright Securities International, cautioned that continued regulatory pressure from mainland China and the volatility of crypto assets could affect the IPO’s valuation.

Broader Trends in Asia’s Digital Asset Sector

HashKey’s listing is part of a wider movement in Asia’s digital asset industry. Thai exchange Bitkub recently revealed plans to seek a Hong Kong IPO, aiming to raise $200 million next year as it shifts focus from Thailand’s challenging market. Hong Kong’s A+H dual-listing structure is also gaining popularity, with 20 mainland firms raising HK$170 billion in 2025. EY’s Jacky Lai noted that increasing structural diversity and policy improvements are reinforcing Hong Kong’s status as a global financial powerhouse.

Looking Ahead

HashKey’s pursuit of a public listing highlights the changing environment for crypto companies seeking regulated markets. As the company prepares for prospectus registration and final pricing, its progress may reflect growing institutional confidence in digital assets—especially in regions with clear regulatory oversight. Ultimately, HashKey’s IPO will test Hong Kong’s ability to foster innovation while safeguarding investors in the rapidly evolving crypto landscape.