HashKey Group Launches Global Crypto Exchange in Bermuda, Aiming to Rival Coinbase
Summary:
HashKey Group has launched HashKey Global, a universal cryptocurrency exchange headquartered in Bermuda, aiming to offer the user experience of Binance with the regulatory safety of Coinbase. The move comes after the collapse of FTX and the acquisition of a Bermuda license by rival Coinbase. HashKey Global plans to introduce spot and futures trading, staking services, and a project launchpad. As of now, the exchange, which does not serve China, the U.S., and many other areas, lists 20 cryptocurrencies for trade in Tether pairs.
In a move to rival Coinbase, HashKey Group, a provider of crypto services, has released HashKey Global, a universal cryptocurrency exchange headquartered in Bermuda. Upon witnessing Coinbase securing a license to run its exchange in Bermuda, HashKey Global saw a strategic opportunity to find the best fit regulatory environment that would further their growth, according to HashKey Global's managing director Ben El-Baz, while speaking to Bloomberg on April 8. The eventual demise of FTX in 2022 prompted crypto exchange users to reevaluate their understanding of risk exposure on these platforms. This created a niche for Hashkey Global to blend the "user and product experience" aspects of Binance along with the "regulated and security-focused back end" elements of Coinbase. The long-term objective, within a time span of the next five years, is to make HashKey Global the world's largest globally compliant exchange.
By outdoing the operational volume of rival competitors in the same territory, specifically mentioning Coinbase International that reported a 24-hour derivatives volume amounting to $539.4 million, HashKey Global has set itself bold business objectives. Conversely to its original Hong Kong wing, which was the initial to be blessed with operational permission for its service in the region, HashKey Global has ruled against providing its services in Hong Kong, along with numerous other locations including China and the United States.
In January this year, the Hong Kong crypto exchange, owned by the group, reached the unicorn status after successfully raising nearly $100 million in a Series A funding round. This was achieved at a pre-money valuation that exceeded $1.2 billion. The company expressed intentions to invest the funds into several of its business units such as asset management, a blockchain node validation service, tokenization service, and a Web3 incubation arm.
Over the forthcoming six months, HashKey Global intends to introduce spot and futures trading, staking services, and a project launchpad while ensuring that the liquidity providers and market makers are present from day one to provide enough market depth, according to El-Baz. He refrained from sharing the specifics of the investment made by HashKey for this new exchange venture. He further assured the company was "sufficiently capitalized" and that Bermuda is extremely cognizant of the kind of capitalization requisites that licensed institutions require.
As of its start, the exchange will exclusively operate with cryptocurrencies. It will feature 20 types of cryptocurrencies that will trade in Tether (USDT) pairs including well-known ones such as Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Dogecoin (DOGE).
Published At
4/8/2024 9:30:38 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.