Hong Kong’s ZA Bank has announced that it plans to launch US trading services after it completes a pilot program. Under the current plans, ZA Bank will offer a broad range of US-listed investment instruments, including stocks, exchange-traded funds (ETFs), and ADRs. The new instruments will be available on its banking app.
New Services after the Removal of License Restrictions
The move came after the local regulator, the Securities and Futures Commission (SFC), lifted previous conditions on the bank’s license that did not allow it to deal in collective investment schemes.
The virtual lender obtained a Type 1 regulated activity license from the SFC in January 2021, Finance Magnates reported. Although the license allows its holders to offer securities, the regulator has imposed some restrictions on ZA Bank until now.
“ZA Bank aspires to build a future bank for now, one that empowers users to achieve their financial goals with ease and convenience,” Ronald Lu, the CEO of ZA Bank, said.
“With exposure to the world’s largest stock market in terms of capitalization, users can capture the growth potential in some of the most valuable and influential companies across the globe. This marks another key milestone for ZA Bank in our commitment to creating a one-stop digital finance platform for users.”
Push of Digital Banks in Hong Kong
Similar to many other countries, Hong Kong witnessed a rise in virtual banks. These banks come under the direct supervision of the Hong Kong Monetary Authority, which issued the first batch of its licenses to virtual banks in 2019.
ZA Bank operates without a physical branch and has more than 700,000 users. It launched its investment services in August 2022 and eventually collaborated with fund managers like AllianceBernstein, Allianz Global Investors, and J.P. Morgan Asset Management. It now offers over 100 investment fund products.
The digital bank reportedly seeks to capitalize on Hong Kong’s push to attract crypto companies. It is among a few other names that are willing to provide fiat currency deposit and withdrawal services to licensed cryptocurrency companies.
Hong Kong’s ZA Bank has announced that it plans to launch US trading services after it completes a pilot program. Under the current plans, ZA Bank will offer a broad range of US-listed investment instruments, including stocks, exchange-traded funds (ETFs), and ADRs. The new instruments will be available on its banking app.
New Services after the Removal of License Restrictions
The move came after the local regulator, the Securities and Futures Commission (SFC), lifted previous conditions on the bank’s license that did not allow it to deal in collective investment schemes.
The virtual lender obtained a Type 1 regulated activity license from the SFC in January 2021, Finance Magnates reported. Although the license allows its holders to offer securities, the regulator has imposed some restrictions on ZA Bank until now.
“ZA Bank aspires to build a future bank for now, one that empowers users to achieve their financial goals with ease and convenience,” Ronald Lu, the CEO of ZA Bank, said.
“With exposure to the world’s largest stock market in terms of capitalization, users can capture the growth potential in some of the most valuable and influential companies across the globe. This marks another key milestone for ZA Bank in our commitment to creating a one-stop digital finance platform for users.”
Push of Digital Banks in Hong Kong
Similar to many other countries, Hong Kong witnessed a rise in virtual banks. These banks come under the direct supervision of the Hong Kong Monetary Authority, which issued the first batch of its licenses to virtual banks in 2019.
ZA Bank operates without a physical branch and has more than 700,000 users. It launched its investment services in August 2022 and eventually collaborated with fund managers like AllianceBernstein, Allianz Global Investors, and J.P. Morgan Asset Management. It now offers over 100 investment fund products.
The digital bank reportedly seeks to capitalize on Hong Kong’s push to attract crypto companies. It is among a few other names that are willing to provide fiat currency deposit and withdrawal services to licensed cryptocurrency companies.
