Hong Kong Stock Exchange-listed BC Group, the operator of institution-focused digital assets trading platform OSL, reported a 737% increase in revenue in 2019.
Hong Kong Stock Exchange-listed BC Group, the operator of institution-focused digital assets trading platform OSL, reported a 737% increase in revenue in 2019.
On March 31, BC Group revealed that its OSL digital assets platform had been its largest 2019 earner, accounting for 44% of the Group’s revenues — up from just 6% in 2018.
The OSL digital assets platform offers institutions services that include over-the-counter brokerage, Software-as-a-Service tools, custodial services and institutional digital asset exchange.
Regulatory progress
Total year-on-year revenue for BC Group in 2019 was RMB72 million ($10 million) — up 737% from the previous year, as noted above.
This increase in revenue was accompanied by OSL’s submission of an application for licenses to conduct regulated activities under the Hong Kong Securities and Futures Commission’s new regulatory framework for digital asset trading platforms.
Submitted in November 2019, the license application is judged by the firm to be a milestone in its digital assets business development, with BC Group CFO Steve Zhang stating:
“We view the introduction of licensing for digital assets in Hong Kong in 2020 as an inflection point. This will galvanise institutional participation in the digital asset space and accelerate growth of BC Group and our OSL digital asset platform business as traditional securities continue to digitize.”
Noting that the digital asset securities market is forecast to grow by over 5,000% to $11 trillion by 2024, BC Group says it has focused its energies on strengthening management and rebranding is digital assets products and services.
Strategies include opening a new OSL office in Singapore in July 2019, intensifying SaaS sales efforts to major institutions, and issuing a $36 million share placement in January 2020 to fund continued expansion.
Despite the turmoil in world markets amid the COVID-19 pandemic, the firm does not believe this will impede the transition of financial services towards digital assets.
In February, Cointelegraph reported that Fidelity International had acquired a stake in BC Group, purchasing 17 million shares for a 5.6% ownership position.
from Cointelegraph.com News https://ift.tt/3aIocQR
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