Two Brokers Compete to Become Asia’s Robinhood as Hong Kong Expands Crypto Support
Published: July 27, 2025 | By Evelyn Cheng
As Hong Kong implements new legislation to formally regulate stablecoins and expand cryptocurrency trading, two online brokerage firms—Futu Holdings and Up Fintech (also known as Tiger Brokers)—are emerging as strong contenders to become Asia’s equivalent of Robinhood, the popular U.S.-based stock and crypto trading platform.
Hong Kong’s Stablecoin Bill and Crypto Growth Potential
On Friday, Hong Kong’s stablecoin bill took effect, establishing a regulatory framework for financial firms to issue and manage stablecoins—cryptocurrencies pegged to traditional government-issued fiat currencies. This regulatory move resembles the U.S. GENIUS Act and signals Hong Kong’s ambition to strengthen its position as a leading global finance hub with progressive crypto support.
According to Morgan Stanley analysts, the immediate impact of the stablecoin bill is likely to increase crypto trading activity across Asia and attract more institutional investors to the digital asset space. The analysts view online brokerage Futu Holdings as a prime beneficiary of this trend, assigning it an overweight rating and setting a price target of $164.25. Similarly, Citi analysts have upgraded their outlook on Up Fintech, elevating it from a neutral to a buy rating in a report published on July 21, while maintaining a neutral rating on Futu—citing Futu’s recent share price gains. Citi also raised their price targets for both stocks: from $9.50 to $14 for Up Fintech and from $113 to $176 for Futu.
Futu and Up Fintech: China-Rooted Brokers Eyeing Hong Kong and Singapore
Both firms, which went public in the U.S. in 2019 shortly before Robinhood’s IPO, originated in mainland China but have shifted their strategic focus towards Hong Kong and Singapore. This shift is largely driven by Beijing’s strict capital controls and its ban on cryptocurrency trading domestically.
Despite regulatory headwinds on the mainland, the combined crypto trading market in Hong Kong and Singapore is estimated at approximately $640 billion. This sizable market remains attractive even after factoring in competition from unlicensed crypto exchanges, according to Citi analysts.
The analysts suggest that Futu and Up Fintech stand to capture significant market share and growth, potentially replicating the impressive trajectory witnessed by Robinhood in the United States.
Robinhood’s Crypto Success as a Benchmark
Robinhood’s recent stock surge is closely tied to its expanding crypto trading segment. In the first quarter, Robinhood’s crypto trading revenue doubled year over year—a growth rate outpacing its overall revenue increase of 50% during that period. The proportion of crypto-related revenue also soared from 3% in 2020 to 21% in 2024. Such performance benchmarks bolster the case that Futu and Up Fintech could similarly benefit from increasing interest and participation in crypto trading within Asia’s evolving regulatory landscape.
Strategic Opportunities and Collaborations for Up Fintech
Citi analysts highlight additional upside potential for Up Fintech through its possible collaborations with Avenir Group, an investment firm connected to the founder of Huobi, a major bitcoin exchange. Avenir acquired a 5.9% stake in Up Fintech in late April.
Potential avenues for partnership include designation of Up Fintech as Avenir’s preferred crypto exchange for over-the-counter (OTC) trading and as its custodian bank, which could generate increased custodian fee revenues and further support Up Fintech’s crypto business development.
Hong Kong’s Unique Position in China’s Financial Landscape
Hong Kong operates as a special administrative region with more progressive financial policies compared to the mainland, where regulatory measures towards cryptocurrencies remain stringent. Hong Kong’s new stablecoin regulations reflect its ambition to test innovative financial models, boost competitiveness, and facilitate cross-border yuan payments.
Further underscoring Hong Kong’s crypto-friendly stance, Eric Trump, son of former U.S. President Donald Trump, is scheduled to headline a major bitcoin conference in the city next month.
Looking Ahead
While Up Fintech and Futu have not yet announced dates for their next earnings releases, Robinhood is set to report earnings this Wednesday local time. Market watchers will be closely monitoring these results and regulatory developments to gauge the evolving dynamics of crypto trading platforms in the Asian market.
As more institutional investors consider entering Asia’s burgeoning crypto space and with Hong Kong poised to lead the way in regulatory innovation, the race between these two brokers to become Asia’s Robinhood is intensifying.
— Reporting contributed by CNBC’s Michael Bloom.
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