HashKey Moves Forward With IPO Amid Significant Losses and Regulatory Challenges

HashKey Holdings Advances Toward IPO After HKEX Approval

HashKey Holdings, recognized as Hong Kong’s leading licensed cryptocurrency exchange, has taken a significant step forward in its journey to go public. Following approval from the Hong Kong Stock Exchange (HKEX) on November 30, 2025, the company is now positioned to move ahead with registering its prospectus and launching investor outreach. The planned IPO aims to secure funding for technological enhancements, new product launches, and international growth. Key sponsors for this offering include JPMorgan, Guotai Haitong, and Guotai Junan. According to Bloomberg, HashKey could seek to raise as much as $500 million through this initiative.

Financial Performance and Market Strategy

Despite regulatory achievements, HashKey continues to face financial hurdles. In the first six months of 2025, the company posted a net loss of HK$506.7 million, an improvement from the HK$772.6 million loss reported during the same period the previous year. This reduction in losses reflects substantial investments in compliance and scalability, necessary in Hong Kong’s highly regulated and competitive crypto landscape. In 2024, HashKey processed HK$638.4 billion in trading volume—double the previous year’s figure. However, its aggressive low-fee approach, charging less than 0.1%, has prioritized expanding its user base over immediate profitability, resulting in a net loss of $151 million. Additionally, offshore trading activity has seen a steep decline, with Bermuda-based volumes dropping from $23 billion in mid-2024 to just $1.4 billion by mid-2025.

Diversification Efforts and Ecosystem Expansion

HashKey has broadened its business by venturing into tokenization, staking, and hosting Web3 events, though these areas have yet to become significant revenue drivers. Tokenization earnings fell to $140,000 (HK$1.1 million) in the first half of 2025, down from $900,000 (HK$7 million) in 2024. Web3 events contributed $3 million in the same period, a modest sum compared to the company’s core trading operations. The broader HashKey ecosystem also encompasses asset management, custody services, and the Ethereum Layer-2 HashKey Chain, which has facilitated the tokenization of $1.7 billion in real-world assets. Despite these initiatives, HashKey’s primary strength remains its commanding 75% share of Hong Kong’s licensed crypto market.

Regulatory Environment and Global Expansion

The regulatory climate presents ongoing challenges, particularly with oversight from mainland China. Although Hong Kong’s digital asset sector is expanding, it remains under close watch from Beijing, which has enforced a ban on crypto trading and mining since 2021. Recent developments show that major Chinese technology firms, such as Ant Group and JD.com, have put plans to launch stablecoins in Hong Kong on hold due to regulatory uncertainties. In response, HashKey is actively pursuing international diversification, with recent expansions into Ireland and Bermuda.

Outlook and Investor Considerations

The outcome of HashKey’s IPO will largely depend on whether investors believe the company can achieve sustainable growth while moving toward profitability. As of August 2025, HashKey reported holding $1.657 billion in cash and $592 million in digital assets, providing a solid financial foundation for its ongoing expansion. Nevertheless, the company’s future remains uncertain as it navigates shifting market conditions and evolving regulatory requirements.