The Hong Kong financial landscape is witnessing a pivotal moment in the evolution of virtual asset adoption, as Victory Securities becomes the first local brokerage to receive dual regulatory approvals from the Securities and Futures Commission (SFC) for critical virtual asset services. These landmark authorizations mark a significant leap forward in bridging traditional finance with digital asset innovation, reinforcing Hong Kong’s position as a leading hub for compliant crypto finance.
This strategic development enables Victory Securities to offer two core services: discretionary account management for both retail and professional investors, and the distribution of physically settled virtual asset structured products to professional clients. These services are built on rigorous compliance frameworks, institutional-grade risk controls, and deep market expertise—setting a new benchmark for professionalism in the digital asset space.
Expanding Access with Discretionary Account Management Services (DAMS)
Under the new SFC authorization, Victory Securities can now provide Discretionary Account Management Services (DAMS) tailored to both retail and professional investors. This service allows clients to entrust their portfolios to a team of seasoned investment professionals who manage assets across a broad spectrum of virtual asset classes—including spot cryptocurrencies, virtual asset futures, and options—while adhering strictly to the SFC’s suitability and investor protection guidelines.
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What sets Victory Securities apart is its access to top-tier global trading venues such as Binance FZE and Deribit FZE, enabling execution on some of the most liquid virtual asset markets worldwide. By combining advanced trading infrastructure with disciplined portfolio strategies, the firm delivers a seamless gateway for investors seeking exposure to this dynamic asset class—without needing to navigate complex technical or regulatory challenges themselves.
The discretionary management model is particularly valuable given the high volatility and rapid pace of change in crypto markets. Many investors struggle with timing entries and exits, managing risk, or maintaining emotional discipline during market swings. Victory Securities addresses these pain points through a structured approach that includes:
- Personalized risk profiling and investment objective alignment
- Dynamic asset allocation strategies adjusted in real time
- Continuous 24/7 market monitoring and rebalancing
- Transparent reporting and full regulatory oversight
This institutional-grade framework ensures that even retail investors can participate in virtual asset markets with confidence, knowing their investments are managed under strict compliance protocols.
Introducing Physically Settled Structured Products for Professional Investors
In addition to DAMS, Victory Securities has also been granted approval to distribute physically settled virtual asset structured products to professional investors—a first-of-its-kind advancement following its earlier authorization for cash-settled products at the end of last year.
Unlike cash-settled instruments, where gains are paid in fiat or stablecoins, physically settled products deliver actual cryptocurrency upon maturity. This feature offers several key advantages:
- Direct ownership of underlying digital assets
- Tax efficiency and clearer audit trails
- Long-term holding potential without intermediate conversions
- Enhanced alignment with bullish market outlooks
These structured products are designed with flexibility in mind, allowing investors to gain leveraged exposure, hedge existing positions, or earn yield through innovative payoff structures—all within a regulated environment.
A Strategic Response to Market Demand and Regulatory Clarity
The dual approvals reflect not only Victory Securities’ commitment to innovation but also its responsiveness to evolving investor needs and Hong Kong’s progressive regulatory stance. As part of the city's broader "embrace virtual assets" policy, regulators have been actively fostering a safe and transparent ecosystem for digital finance.
Victory Securities has positioned itself at the forefront of this transformation by building a comprehensive, end-to-end service ecosystem covering:
- Virtual asset trading
- Discretionary portfolio management
- Structured product distribution
This full-chain capability makes it a rare player capable of offering a true one-stop virtual asset solution, catering to both individual and institutional clients navigating the convergence of traditional and digital finance.
Core Keywords Driving Industry Transformation
To align with search intent and enhance discoverability, the following keywords naturally emerge as central to this development:
- Virtual asset services
- Discretionary account management
- Physically settled structured products
- SFC-approved crypto services
- Institutional crypto investing
- Hong Kong virtual asset regulation
- Crypto portfolio management
- Regulated digital assets
These terms reflect growing interest among investors searching for secure, compliant ways to access cryptocurrency markets—exactly what Victory Securities now delivers.
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Frequently Asked Questions (FAQ)
Q: What is discretionary account management in the context of virtual assets?
A: It’s a professional investment service where an authorized firm manages a client’s crypto portfolio based on their risk profile and goals, making real-time decisions on asset allocation, trades, and risk controls—all under strict regulatory supervision.
Q: How does physically settled differ from cash-settled structured products?
A: With physical settlement, investors receive actual cryptocurrency when the product matures. Cash-settled products pay out in fiat or stablecoins. Physical delivery allows direct ownership and long-term holding benefits.
Q: Are these services available to retail investors?
A: The discretionary account management service is available to both retail and professional investors. However, distribution of physically settled structured products is currently limited to professional investors only.
Q: Why is this approval significant for Hong Kong’s financial market?
A: It demonstrates the SFC’s confidence in regulated intermediaries managing complex digital assets, reinforcing Hong Kong’s status as a global leader in compliant crypto finance innovation.
Q: How does Victory Securities manage risk in volatile crypto markets?
A: Through an institutional-grade risk management framework that includes real-time monitoring, dynamic rebalancing, strict adherence to client risk parameters, and diversified exposure across spot and derivatives markets.
Q: Can I access global crypto exchanges through Victory Securities’ managed accounts?
A: Yes, the firm leverages partnerships with major global platforms like Binance FZE and Deribit FZE to ensure deep liquidity and efficient trade execution for clients.
Pioneering the Future of Digital Finance
As more investors seek regulated pathways into digital assets, Victory Securities’ latest milestones underscore a broader trend: the professionalization and institutionalization of crypto investing. By offering SFC-compliant discretionary management and innovative structured products, the firm is not just expanding access—it’s redefining how trust, transparency, and performance intersect in modern finance.
With Hong Kong accelerating its digital asset agenda, firms like Victory Securities are well-positioned to lead the charge toward a more integrated, secure, and investor-friendly financial future.
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