HashKey Global, the latest exchange from the crypto group, aims to expand beyond its native Hong Kong and compete with Coinbase’s international exchange.
Crypto service provider HashKey Group has joined rival Coinbase in launching a global crypto exchange based in Bermuda, called HashKey Global.
According to Ben El-Baz, managing director of Hashkey Global, the decision came after observing Coinbase’s acquisition of a Bermuda license to operate its international exchange. El-Baz stated to Bloomberg on April 8 that they evaluated various options and found Bermuda’s regulatory framework to be highly suitable for their expansion.
Ben El-Baz highlighted the aftermath of FTX’s collapse in 2022, noting that users now have a better understanding of counterparty risks associated with exchanges. He believes there is an opportunity for HashKey Global to blend the user and product experience of Binance with the regulatory and security measures of Coinbase.
Furthermore, Ben El-Baz stated that Hashkey Global aims to surpass the trading volume of competitors in Bermuda, particularly Coinbase International, which reported a 24-hour derivatives volume of $539.4 million.
Unlike its Hong Kong-based counterpart, which was the first to obtain a license to operate in the region, HashKey Global will not serve customers in Hong Kong, China, the United States, and several other regions.
In January, the Hong Kong-based crypto exchange achieved unicorn status after securing nearly $100 million in a Series A funding round, valuing the company at over $1.2 billion before the funding.
The funds raised are intended to support various business arms, including asset management, blockchain node validation services, tokenization services, and a Web3 incubation arm.
Over the next six months, HashKey Global plans to offer spot and futures trading, staking services, a project launchpad, and ensure market depth through liquidity providers and market makers.
Ben El-Baz declined to disclose the amount invested in the new exchange effort, stating only that they believed it was adequately capitalized. He emphasized Bermuda’s strict awareness of capitalization requirements for licensed institutions.
At launch, the exchange will support cryptocurrency trading only, offering 20 cryptocurrencies trading in Tether pairs, including Bitcoin, Ether, USD Coin, and Dogecoin.
