Huobi Technology, a Hong Kong-listed company, has announced through its official website that its subsidiary Huobi Trust is actively expanding compliant virtual asset custody services.
Approved as a trust company in Hong Kong this April, Huobi Trust provides secure custody solutions for clients requiring asset protection or risk isolation. Remarkably, within just four months, its Assets Under Management (AUM) surpassed $1 billion by August 2023.
Huobi Tech: Pioneering Virtual Asset Funds Among HKEX-Listed Firms
On May 21, Huobi Technology disclosed encrypted asset business earnings in its 2021 Interim Results Report, revealing HK$900,000 in revenue from custody and compliance services. These operations are conducted through Huobi Trust US, licensed by Nevada's Financial Institutions Division.
Beyond U.S. approvals, Huobi secured a trust license in Hong Kong.
Key milestones:
- January 2021: First mentioned virtual asset management plans in 2020 Annual Report under Huobi Asset Management (Hong Kong).
- March 2021: Hong Kong SFC’s Type 4 (securities advice) and Type 9 (asset management) licenses took effect.
April 2021: Launched 4 virtual asset funds for professional investors, including:
- Bitcoin Tracking Fund
- Ethereum Tracking Fund
- Multi-strategy Virtual Asset Fund
- Blockchain Mining PE Fund
- Current Portfolio: 5 funds total, including a hybrid fund (10% crypto + 90% traditional assets).
$1B AUM in Four Months: How Huobi Trust Scales
Trust structures may seem niche, but Grayscale Investments—a DCG subsidiary since 2013—demonstrates their potential. As the largest SEC-regulated crypto trust, Grayscale manages $37.4B in assets, predominantly BTC and ETH, catering to institutional investors like hedge funds and pension accounts.
Asia lacks comparable crypto trust giants, positioning Huobi Trust as a potential regional leader.
Industry Perspectives:
Ye Ding, Partner at Hash Capital:
"Mainstream and crypto finance integration is inevitable. Though digital assets remain smaller than traditional markets,合规 enterprises are penetrating conventional finance, broadening global adoption."
Liu Kai, Partner at Dongyuan Equity Investment:
"Huobi Trust leverages exchange resources for liquidity and branding. However, China’s 2023 exit affects fundraising. Hong Kong institutional funds can participate, but mainland investors face forex limits."
Policy Headwinds: China’s "924 Notice" Impact
Following China’s stringent September 24 regulations, Huobi Global Exchange announced withdrawal from mainland markets. This may introduce uncertainties for Huobi Trust’s growth trajectory, particularly in liquidity and capital inflows.
FAQs: Addressing Key Queries
1. What distinguishes Huobi Trust from other crypto custodians?
Huobi Trust uniquely combines Hong Kong and U.S. regulatory approvals with Huobi’s exchange infrastructure, enabling rapid AUM scaling.
2. Can retail investors access Huobi Trust’s funds?
Currently, funds target professional investors only, per Hong Kong SFC guidelines.
3. How does Huobi Trust ensure asset security?
Employs institutional-grade custody protocols,定期 publishing proof-of-reserve reports for transparency.
4. Will Huobi Trust list products on exchanges?
Pending approvals,上市港交所 could resolve liquidity challenges post-China exit.
5. What’s the minimum investment threshold?
Typically aligns with Hong Kong’s professional investor criteria (e.g., HK$8M portfolio).
👉 Explore compliant crypto custody solutions
Note: Huobi Group declined to comment on trust fund specifics at publication time.
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