Sunday, 2024 March 3

Singapore’s GIC injects USD 70 million into Hong Kong-listed digital asset platform BC Group

Hong Kong-listed BC Group, the operator behind crypto trading platform OSL, said on Friday that it notched HKD 543 million (USD 70 million) from Singapore’s sovereign wealth fund GIC via a private placement. The firm will spend the fresh capital on the technology of its digital asset business, working capital, and other expenses, according to the filing. USD 13 million has been set aside for its expansion into new markets, including Singapore, the UK, and the US.

BC Group supports large banks across the region that are increasingly rushing into the crypto space, which has hit a total market value of USD 1.63 trillion, according to data from CoinGecko. Last week, the firm announced a partnership with Standard Chartered’s innovation unit to launch a digital brokerage and exchange service in the UK and Europe. In December, it signed an agreement with Singapore’s DBS Bank to assist with its digital asset platform.

“The investment is a major milestone for our business,” said CEO Hugh Madden. “It’s also a massive win for digital assets adoption in the Asia Pacific, particularly the growing hubs of Hong Kong and Singapore.”

OSL, a subsidiary of BC Group, is the first company in Hong Kong that received a digital asset license from the Securities and Futures Commission in December, allowing it to operate crypto brokerage and automated trading services for professional and institutional investors. OSL also applied for a digital asset license from the Monetary Authority of Singapore.

Hong Kong authorities have meanwhile stepped up regulation of the cryptocurrency industry, requiring trading platforms to apply for a license that will only allow them to provide services to professional and institutional investors, according to a consultation paper published by the government on May 21.

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