Standard Chartered-incubated digital bank Mox Bank debuts crypto ETFs for retail investors

by

As a researcher with a keen interest in the dynamic world of finance and technology, this latest development from Mox Bank, backed by Standard Chartered, has piqued my curiosity. Having closely followed Hong Kong’s ambitious strides towards becoming a global crypto hub, I find it fascinating to see such rapid progress.

In simple terms, Mox Bank, a digital banking platform by Standard Chartered, has made history as the first virtual bank in Hong Kong to provide direct access to crypto exchange-traded funds (ETFs) for individual investors.

The digital bank, Mox Bank based in Hong Kong, has commenced services for cryptocurrency trading through spot ETFs, as the city continues its endeavor to establish itself as a global hub for cryptocurrencies. In a press release dated August 7th, Mox announced that it is now the first virtual bank in Hong Kong to offer such investment opportunities to individual traders.

At a crucial moment, the bank observed that the rollout aligns, as a recent poll indicates that around a third of Hong Kong’s population has interacted with cryptocurrencies. Furthermore, Mox highlighted that approximately one-third of crypto users might transfer their primary banking activities to banks providing crypto services.

Mox announces an array of cryptocurrency exchange-traded funds (ETFs), compliant with Hong Kong’s regulations, will be offered. These ETFs include those based on direct crypto investments (spot ETFs) and derivatives (derivative ETFs), which are listed on both Hong Kong and U.S. stock exchanges. The lineup of assets encompasses Bitcoin (BTC) and Ethereum (ETH) for spot ETFs, with futures contracts available for derivative ETFs, according to the press release.

Standard Chartered doubles down on crypto

To attract more customers, the bank plans to reduce trading fees on both HK-listed and U.S.-listed ETFs to 0.12% of each transaction’s value. Moreover, Mox clarified that they won’t levy any extra custodian or management fees above those already set by the companies managing these specific ETFs.

Introduced in September 2020, Mox is a digital bank supported by Standard Chartered, marking a significant step forward in Standard Chartered’s expansion into the cryptocurrency industry. In keeping with this approach, the bank is also pouring resources into other sectors; notably, it was revealed in mid-July that Standard Chartered is one of the institutions taking part in the stablecoin sandbox run by the Hong Kong Monetary Authority. This gives the bank the opportunity to explore the creation of digital assets tied to real currencies.

Read More

2024-08-07 12:38