OSL and Solomon Strengthen Partnership to Facilitate Hong Kong’s Innovative Spot Crypto ETFs with In-kind Subscription and Redemption

(Hong Kong, 26 April 2024) – In a groundbreaking move within the financial sector, Hong Kong licensed and regulated digital assets exchange platform OSL Digital Securities (“OSL”), alongside its partner versatile securities brokerage Solomon JFZ (Asia) Holdings Limited (“Solomon”), is expanding beyond their existing omnibus brokerage model. This advanced partnership now includes comprehensive advisory and operational support, specifically tailored to facilitate the in-kind subscription and redemption processes essential for the successful deployment and management of Hong Kong’s first Spot Crypto ETFs, ready to be launched soon.

This enhancement of the partnership allows Solomon to play a key role as a participating dealer, facilitating these in-kind transactions that are pivotal for the operational success of the Spot Crypto ETFs. Such transactions enable investors to subscribe to or redeem ETF shares directly with the underlying digital assets, reflecting a significant advancement in the liquidity and accessibility of digital asset investments.

OSL, with its robust expertise in secure digital asset custodian and regulated trading services, alongside Solomon’s adept handling of financial dealing, ensures that this ETF not only adheres to the highest standards of compliance but also aligns with the innovative spirit of Hong Kong’s financial market.

OSL - the first virtual asset trading platform and sub-custodian for two out of three approved spot crypto ETFs in Hong Kong

OSL, serving as the first sub-custodian and exchange partner, plays a pivotal role in supporting the secure and compliant rollout of the Spot Crypto ETF.

Patrick Pan, Chairman of the Board & CEO of OSL, addressed, “The introduction of these ETFs marks a significant enrichment of Hong Kong’s financial landscape, enhancing investment options and market liquidity which are crucial for our economy’s dynamism. At OSL, leveraging our status as the only publicly listed digital assets company in Hong Kong, we ensure leadership through stringent regulatory compliance and a proven track record, evidenced by our successful SOC 2 Type 2 audit. We're proud to support this pivotal financial innovation.”

Solomon - the first batch of SFC-approved participating dealer to support physical in-kind subscription and redemption for spot crypto ETFs in Hong Kong

Solomon JFZ (Asia) Holdings Limited, a subsidiary of SOLOWIN HOLDINGS (Nasdaq: SWIN), will facilitate the issuance and trading of the ETF, ensuring compliance and investor confidence through rigorous adherence to regulatory standards.

Thomas Tam, Chief Executive Officer of SOLOWIN, commented, "We are excited to play a crucial role in the launch of the first spot Bitcoin and Ethereum ETF in Hong Kong. The approval, coming just three months after the U.S. introduced similar ETFs which attracted around US$12 billion in investments, marks a significant regulatory advancement for Hong Kong’s aspirations to be a global virtual asset hub. And the introduction of the in-kind subscription mechanism that allows investors to buy into the ETF using Bitcoin or Ethereum directly is viewed as a transformative vehicle for channeling significant investment into the virtual asset space.”

This initiative is a prime example of effective collaboration in Hong Kong’s financial sector, with OSL, Solomon, and regulatory bodies working together to ensure investor protection and compliance. Such collaborative efforts are vital for propelling the local digital asset market forward, setting new benchmarks for innovation and attracting more inbound investment.

About Solomon

Solomon JFZ (Asia) Holdings Limited (“Solomon”) is a Chinese investor-focused and versatile securities brokerage company based in Hong Kong. We offer a wide spectrum of products and services across traditional assets to virtual assets, through our advanced and secured one-stop electronic platform. Solomon’s holding company, Solowin Holdings (Nasdaq: SWIN) was listed on Nasdaq on September 7, 2023.

Solowin has become a high growth business since 2021, with its subsidiary that is licensed with the Hong Kong Securities and Futures Commission, Solowin provide investors and corporate clients with the highest quality one stop financial solutions, including Securities Brokerage, Virtual Assets Trading, Investment Banking, Asset Management and FinTech services. Our Core Values are Investors Protection and Compliance. We also believe that our innovation on system architecture, bringing new products and services that will definitely meet the evolving needs of investors and corporate clients.