On the morning of May 7th, Twitter user FORAB revealed that Futu Securities is internally testing the token deposit function, supporting Bitcoin, Ethereum, and USDT. Just a few hours later, it was officially confirmed. Futu Securities International (Hong Kong) Limited, a financial technology giant in Hong Kong, announced that its core trading platform Futu NiuNiu has officially launched BTC, ETH, and USDT deposit services. Eligible investors can deposit coins, trade encrypted currencies to obtain funds, and then invest in more asset categories or withdraw funds through the one-stop trading platform Futu NiuNiu.

Hong Kong VATP license was approved in January this year

Futu Holdings Limited is a Hong Kong-based financial technology company founded in 2012, dedicated to providing digital brokerage and wealth management services through technological innovation. According to its official data, as of Q4 2024, Futu has over 34 million registered users globally, with approximately 2.5 million paid users, representing a year-on-year growth of 39.1%. The performance in the Hong Kong market is particularly strong, with Futu Bull users covering over 50% of the local adult population. In 2024, Futu’s total revenue increased by 86.8% year-on-year, and the non-GAAP adjusted net profit increased by 105.4%.

Futu Securities founder and CEO Li Hua

Futu Securities is its core subsidiary, as a licensed securities firm in Hong Kong, holding licenses No. 1 (securities trading), No. 4 (providing advice on securities), and No. 9 (asset management) issued by the Securities and Futures Commission (SFC), with the qualifications to legally conduct securities trading and related financial services. These licenses ensure that Futu’s securities business in Hong Kong is strictly regulated, complying with requirements such as anti-money laundering and know-your-customer. However, services related to cryptocurrencies involve regulation of Virtual Asset Trading Platforms (VATPs), requiring an additional application for VATP licenses.

As early as 2021, Gate has shown interest in the encryption market. According to Caixin, Robin Li Xu, Vice President of Gate Holdings, stated that the company had applied for digital currency-related licenses in Hong Kong, the United States, and Singapore that year, with plans to enter the encryption trading sector, although the process was slow. In recent years, Hong Kong has gradually opened up its regulation of encrypted assets. In 2023, the Hong Kong Securities and Futures Commission introduced the VATP licensing system, allowing compliant platforms to provide cryptocurrency trading services to retail investors. It is worth noting that PantherTrade, a wholly-owned subsidiary of Gate Holdings, applied for a VATP license that year, and as of the end of January 2025, the Hong Kong Securities and Futures Commission approved the PantherTrade VATP license.

Futu Securities’ newly launched encryption deposit service allows ordinary users to deposit Bitcoin (minimum 0.0002 BTC) and Ethereum (minimum 0.001 ETH) from their personal wallets to their accounts, with funds typically arriving within 1 hour; professional investors can deposit USDT using a designated network and without fees. The introduction of this feature allows Futu Bull users to seamlessly manage cryptocurrencies and traditional assets on the same platform, significantly enhancing the flexibility of investment portfolios from Hong Kong stocks, US stocks to Bitcoin, ETFs.

Gate’s move is not an isolated case, but part of the global financial technology platform embracing the encryption trend. The United States’ Robinhood is a striking example. The platform, which disrupts traditional brokerages with “zero commission,” launched bitcoin and ethereum trading services as early as 2018, gradually expanding to assets such as dogecoin and litecoin. Robinhood’s encryption business quickly became one of its main revenue streams, with the 2023 financial report showing that encryption trading income accounted for nearly 20% of its total revenue. Similarly, global investment platforms such as eToro have also made cryptocurrency a core business, attracting a large number of young investors. Gate Securities’ move is clearly inspired by these pioneers. The launch of its encryption deposit service is not only a necessary choice in the market competition, but also a keen response to the changing needs of users.

Lower the threshold for stock trading users to buy coins

For traditional stock trading users of Gate, the launch of encryption deposit services is quite attractive. First, it enriches the diversity of the investment portfolio. Stock trading users are used to investing in traditional assets such as Hong Kong stocks, US stocks, ETFs, etc., but cryptocurrencies, as an alternative asset with high growth potential, have attracted global investors’ attention in recent years. In 2024, the price of Bitcoin once broke through $100,000, demonstrating strong market demand. Gate allows stock trading users to deposit BTC, ETH, and USDT through the same account, directly participating in the cryptocurrency market without the need to register an additional account with a cryptocurrency exchange, reducing the learning and operation barriers.

Secondly, Futu’s encryption service provides stock traders with a new tool to hedge market risks. The stock market and the encryption market often show different volatility cycles, for example, in 2021 when Bitcoin plummeted, some stock markets remained stable. Stock traders can diversify investment risks by allocating a small amount of encryption assets, especially to capture rising opportunities in the encryption market when traditional markets are sluggish.

The deposit function of USDT provides professional investors with a stable fund transfer station, making it easy to switch flexibly between the stock market and the encryption market. Compared with successful cases of platforms like Robinhood attracting young investors through encryption trading, Futu NiuNiu’s stock trading users are younger and have a higher proportion of high-net-worth individuals, and they have a higher acceptance of cryptocurrencies. This feature of Futu is expected to further enhance platform stickiness and attract users to increase account funds.

Diversified investments of cryptocurrency traders

For ‘coin trading’ users who are keen on encryption currency trading, Futu Securities’ deposit service also brings certain attractiveness. First, Futu Bull platform supports BTC, ETH, and USDT deposits, covering mainstream assets in the encryption market. BTC and ETH, as the top two cryptocurrencies by market value, have high liquidity and market recognition; USDT, as a stablecoin, provides value anchoring for trading, reducing volatility risk.

Secondly, Futu’s brand endorsement and compliance provide cryptocurrency users with higher security guarantees. Compared to some encryption exchanges that have suffered asset losses due to technical vulnerabilities or hacker attacks, Futu, as a licensed securities firm, significantly reduces financial risks by relying on mature trading systems and strict regulatory requirements. For example, the American platform Robinhood attracts a large number of users through encrypted transactions, with compliance and technical stability being key factors. Futu’s similar positioning is expected to replicate this success, attracting cryptocurrency users sensitive to security and transparency.

In addition, Futu Niu Niu’s one-stop platform allows cryptocurrency traders to quickly convert between encrypted assets and traditional financial assets. Users can manage bitcoin, Hong Kong stocks, US stocks, and other assets in the same account, eliminating the hassle of transferring funds across platforms and improving capital utilization efficiency. This seamless connection is particularly attractive to cryptocurrency traders who pursue diversified investments. Some cryptocurrency traders also pay attention to opportunities in US stocks and Hong Kong stocks. When the cycles of the cryptocurrency circle and the stock circle are mismatched, and they rise and fall at different times, it is also convenient for investors to flexibly grasp the fluctuations and seize dual opportunities in encryption and the stock market.

However, cryptocurrency users need to be aware that Futu’s encryption services are currently mainly targeted at Hong Kong and overseas users, and users from mainland China cannot participate due to regulatory restrictions. Additionally, Futu has set a threshold for USDT deposits for professional investors (proof of 8 million Hong Kong dollars in assets), which has led some in the market to joke about ‘blocking retail investors.’ The very high threshold makes it almost impossible for small retail investors to participate in trading on the platform, and the exact number of participants in deposits is still unknown.

Summary

For Futu itself, this move not only meets the needs of existing users, but may also attract new users to join, further expanding market share. From an industry perspective, Futu’s entry is still not to be underestimated. Encryption assets are accelerating into the mainstream, and their compliant operation on traditional financial platforms is also injecting transparency into the already distrustful encryption industry. Finally, Futu’s actions may trigger a chain reaction. Local securities firms in Hong Kong, such as Victory Securities, have already supported encrypted deposits. Futu’s entry will encourage more traditional financial institutions to follow suit and accelerate industry consolidation.

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