Shinhan Financial Group is moving deeper into digital assets after opening discussions with Hong Kong Securities and Financial Conduct Authority (FCA) to secure a virtual asset license for its securities business. The South Korean financial giant plans to use Hong Kong as a regional base for tokenized finance, including security token offerings and real-world asset tokenization, as competition among Asian banks intensifies.
As per a local report, industry sources said Shinhan Investment & Securities’ Hong Kong subsidiary is currently consulting with the Hong Kong Securities and Futures Commission about expanding beyond traditional securities operations. The company already holds brokerage, investment advisory, and asset management licenses in the city. However, Shinhan now seeks a Virtual Asset License Uplift that would allow broader digital asset trading and distribution services.
A senior Shinhan official said the company is reviewing institutional-focused strategies tied to tokenized asset supply and distribution for professional investors, family offices, and wealthy clients. As a result, analysts increasingly view Hong Kong as Shinhan’s launchpad for building a larger global digital asset business beyond conventional banking revenue streams.
Hong Kong emerges as digital asset hub
Shinhan’s push into digital assets reflects a wider shift across South Korea’s financial industry as major firms race to secure positions in regulated crypto markets. Increasingly, banks and securities companies view Hong Kong as the easiest gateway into tokenized finance because regulators there have moved faster to establish clearer digital asset rules.
Industry executives said financial firms have already spent years testing blockchain projects and pilot programs. Now, attention has shifted toward building real businesses around tokenized assets, stablecoins, and institutional crypto services. As a result, Hong Kong has emerged as the preferred hub for companies seeking regulated access to global investors and digital asset distribution networks.
Shinhan also used its latest quarterly report to signal a deeper push into digital assets. The group said its Hong Kong subsidiary would “explore new possibilities in the digital asset sector,” while identifying real-world asset tokenization as a key future business area. The move highlights Shinhan’s broader effort to build new revenue streams beyond its traditional banking and brokerage operations.
Chairman Jin Ok-dong has also intensified overseas investor outreach as Shinhan searches for new revenue sources outside conventional lending businesses. Since May 10, Jin has traveled across the United States, Mexico, and Canada to meet institutional investors and discuss the group’s global expansion and diversification plans.
Regulators tighten crypto oversight
Hong Kong regulators have continued tightening oversight of digital assets as institutional interest in the sector grows. Earlier this year, the Hong Kong Monetary Authority granted stablecoin issuer licenses to HSBC and Anchorpoint Financial after reviewing 36 applications, highlighting the city’s cautious approach toward crypto expansion.
At the same time, authorities have increased warnings about fraud and market risks tied to digital assets. In April, the HKMA alerted investors about fake tokens circulating under names linked to licensed stablecoin issuers. Meanwhile, Hong Kong’s insurance regulator proposed new rules that would allow insurers to invest directly in cryptocurrencies and digital infrastructure under stricter risk management requirements.
Also Read: South Korean Pension Relief Firm Loses $32M on Ethereum ETF Bet
