Mox Bank, a digital bank backed by Standard Chartered, has launched a new service allowing its customers to invest in cryptocurrency exchange-traded funds (ETFs) directly through its platform. This move makes Mox the first virtual bank in Hong Kong to offer such crypto-related investment products, catering to the growing demand for digital assets in the region.
The announcement also stated that Hong Kong’s interest in digital assets is rising at the same time as the introduction of Crypto ETFs. According to a recent survey, about one-third of Hong Kong residents have experimented with cryptocurrencies, and one in three of those owners are thinking about moving to a bank that offers goods related to cryptocurrencies.
Mox Opens Doors to Range of Crypto ETFs
Customers can now access a variety of Crypto ETFs that are allowed by Hong Kong rules through Mox Invest. These comprise US-listed derivative Crypto ETFs as well as spot and derivative Crypto ETFs listed in Hong Kong. For spot ETFs, the investable assets are Bitcoin and Ethereum; for derivative ETFs, the investable assets are futures contracts for these cryptocurrencies.
Barbaros Uygun, CEO of Mox Bank, emphasized the bank’s commitment to innovation and customer-centric services. He said, “As a digital bank with a vision of building a global benchmark from Hong Kong, Mox believes in staying ahead of the competition by being innovative and responsive to changing markets.
He added that the introduction of Crypto ETFs to the Mox Invest platform allows customers to explore new investment opportunities in a regulated and trusted environment, making the process safe and straightforward via the Mox app.
Low Trading Fee for Investors?
The low trading fees of Mox’s Crypto ETF program are among its main selling features. Consumers can invest in Crypto ETFs that are listed in both Hong Kong and the United States at low fees: USD 0.01 per share (minimum USD 5) for U.S.-listed ETFs and 0.12% of the transaction value (minimum HKD 30) for Hong Kong-listed ETFs.
The bank’s decision to launch Crypto ETFs is viewed as a calculated attempt to draw in tech-savvy clients and strengthen its position in the cutthroat Hong Kong banking industry.
Mox Bank intends to provide direct cryptocurrency trading in the future, according to chief product officer Jayant Bhatia, who spoke with the South China Morning Post. However, this will need working with a licensed exchange.
Only licensed exchanges are currently permitted to provide cryptocurrency trading services in Hong Kong, and Mox plans to collaborate with one of these exchanges to increase the range of services it offers.