OSL, Hong Kong’s first ever licensed exchange, aims to raise a total of $300 million, with $90.6 million of it used for global business expansion and delving into stablecoins.
Summary
- OSL plans to use nearly $100 million of its total funding for international expansion and stablecoin infrastructure.
- Hong Kong’s first licensed exchange may be planning to dive into stablecoins.
On July 25, the digital asset company declared that it would use some of the funds to pursue business expansion into other regions across the globe. According to a document issued by Macquarie Capital Limited, the firm has entered a placing and subscription agreement that is expected to generate HK$2,355.03 million or approximately $300 million.
OSL intends to use 50% of the funds to support the exchange’s strategic acquisition initiatives, indicating that the firm plans to purchase more companies outside of its own financial Group. Another 20% will be used to support other corporate needs. Meanwhile, 30% of the funds or approximately HK$700.83 million will be allocated for global expansion plans and a new business strategy.
This new business strategy will involve payment and stablecoin initiatives. It comes just a few days before Hong Kong’s first stablecoin act will come into effect on August 1. The region is gearing up to become the next digital-asset hub by offering crypto licenses to firms that plan to issue HKD-pegged stablecoins.
Will Hong Kong’s OSL join the stablecoin race?
Although it is still unknown whether the firm has plans to register for a stablecoin issuer license, joining a list of regional companies like JD.com and Animoca Group’s joint partnership with Standard Chartered and Telecom, the exchange’s executive has hinted at expansions into stablecoin payment through the global expansion.
In an interview with Bloomberg, chief financial officer of the publicly-listed OSL Group, Ivan Wong said that the regulatory environment in Hong Kong has made the firm more certain in its plans to expand its business reach beyond the borders, particularly in terms of stablecoins.
“The funding will accelerate our global buildout — particularly in regulated stablecoin infrastructure and compliant payment rails,” said Wong in his statement.
According to OSL’s observations, Wong stated that there is “strong participation from Asian and international financial institutions and investors,” specifically in the growing adoption of digital assets. Some of the joiners even include sovereign wealth funds and large hedge funds.
