First Licensed Brokers Enter Digital Asset Market: How Eddid Financial Expanded into RWA Over Two Years

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The Hong Kong Securities and Futures Commission (SFC) has recently approved a major Chinese-funded brokerage to upgrade its license, officially allowing it to enter the digital asset market—a move that has sparked widespread industry attention. In fact, since the SFC introduced its license-upgrade framework in 2023, several brokerages have successfully transitioned into this new financial frontier. Among them, early movers like Eddid Financial have not only established comprehensive business ecosystems but are now shaping the future of digital finance in Asia.

Eddid Financial’s subsidiary, Eddid Securities & Futures, was one of the first firms approved for license upgrading in September 2023. Since then, it has systematically expanded its virtual asset offerings, positioning itself at the forefront of innovation and compliance. Today, Eddid provides end-to-end services across digital asset trading, market making, and is actively pioneering solutions in Real-World Assets (RWA)—catering to retail investors, institutional clients, and enterprises alike.

The Strategic Advantage of Early Movers

Securing an upgraded license from the SFC is more than a regulatory milestone—it signifies trust, compliance capability, and operational readiness in the fast-evolving digital asset space. For pioneers like Eddid Securities & Futures, this early approval unlocked critical opportunities to influence market structure and infrastructure development.

In 2024, Hong Kong launched the world’s first spot Ethereum ETFs and Asia’s first spot Bitcoin ETFs. Eddid Securities & Futures was among the select few brokerages involved in primary market creation and redemption processes, ensuring smooth market operations. Notably, it became one of the first brokers in Hong Kong to offer physical creation and redemption for these ETFs—enabling investors to use Bitcoin or Ethereum directly as collateral. This breakthrough significantly enhanced market liquidity and flexibility.

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Furthermore, Eddid pioneered margin financing services for virtual asset spot ETFs, allowing clients to pledge their ETF holdings as collateral. This feature improves capital efficiency and portfolio agility—empowering investors to seize timely opportunities without liquidating positions.

Dr. Yang Weijian, Head of Virtual Assets at Eddid Financial, emphasized:

"As one of the first licensed brokers, we carry both responsibility and vision. Our goal is to set benchmarks through innovation rooted in compliance—driving sustainable growth in Hong Kong’s digital asset ecosystem."

Building a Robust Ecosystem: Partnerships and Technology

Over the past two years, Eddid has cultivated strategic alliances with licensed crypto exchanges such as HashKey Exchange and EXIO Limited. These collaborations have been instrumental in advancing institutional-grade trading infrastructure and promoting broader adoption of cryptocurrency among retail and professional investors.

Through continuous investment in technology, Eddid has developed a resilient trading platform capable of handling high-frequency transactions with minimal latency. This technical foundation supports round-the-clock liquidity provisioning—an essential component for stabilizing prices and deepening market depth in volatile digital asset markets.

Dual Breakthroughs: Market Making and Stablecoin Innovation

One of the most transformative developments in 2025 was the passage of the Stablecoin Bill by Hong Kong’s Legislative Council. The new regulation provides a clear legal framework for stablecoin issuers and operators—addressing concerns around transparency, reserve backing, and systemic risk.

Eddid Financial swiftly responded by partnering with key players to explore practical applications of stablecoins in settlement systems and cross-border payments. By leveraging blockchain-based stable assets, Eddid aims to streamline transaction speeds, reduce costs, and enhance financial inclusion—aligning with Hong Kong’s ambition to remain a global financial hub.

Dr. Yang added:

"Stablecoins aren’t just digital cash—they’re bridges between traditional finance and the emerging digital economy. We believe they will be central to the globalization of digital finance."

Expanding into RWA: Bridging Physical and Digital Economies

With solid foundations in digital asset trading and market making, Eddid Financial is now turning its focus toward Real-World Assets (RWA)—a rapidly growing segment that tokenizes tangible assets like real estate, bonds, private equity, and commodities on blockchain networks.

This shift responds directly to Hong Kong’s updated Digital Asset Development Policy Declaration 2.0 and the SFC’s A-S-P-I-Re roadmap, both of which emphasize sustainable liquidity as a cornerstone of long-term market health. Eddid plans to launch RWA distribution and market-making services covering real estate-backed tokens, fixed-income instruments, and other asset classes—offering investors diversified exposure with enhanced transparency and tradability.

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Tokenizing RWAs brings numerous advantages:

By combining proven market-making expertise with RWA infrastructure, Eddid is helping unlock trillions in previously illiquid value—fueling a new era of financial innovation.

Future Outlook: Powering Hong Kong’s Global Digital Finance Ambitions

As a full-service financial group deeply embedded in Hong Kong’s capital markets, Eddid Financial’s strategy aligns closely with the city’s vision of becoming a globally recognized hub for regulated digital finance.

Looking ahead, Eddid will continue integrating fintech advancements—such as AI-driven analytics, secure custody solutions, and decentralized finance (DeFi) gateways—into its core offerings. Through collaborative innovation with regulators, exchanges, and institutional partners, Eddid aims to accelerate the convergence of traditional finance (TradFi) and digital assets.

This integrated approach not only enriches investor choice but also strengthens systemic resilience, risk management, and capital efficiency across markets.

Frequently Asked Questions (FAQ)

Q: What does it mean for a broker to upgrade its SFC license?
A: License upgrading allows traditional brokers to legally offer digital asset services under strict regulatory oversight. It ensures investor protection while enabling innovation within a compliant framework.

Q: Why are spot Bitcoin and Ethereum ETFs important?
A: These ETFs give investors exposure to crypto price movements without holding private keys. Physical creation/redemption mechanisms improve transparency and reduce counterparty risk compared to synthetic products.

Q: How do stablecoins support financial innovation?
A: Stablecoins enable instant settlements, reduce remittance costs, and act as reliable on-ramps for fiat-to-crypto transactions. With proper regulation, they can become foundational layers for next-generation payment systems.

Q: What types of real-world assets can be tokenized?
A: Common examples include commercial real estate, corporate bonds, private credit funds, infrastructure projects, fine art, and even royalty streams—all made tradable in smaller units via blockchain.

Q: Is RWA investing safe?
A: When conducted through regulated platforms using audited reserves and transparent smart contracts, RWA investments offer strong security. Regulatory clarity in jurisdictions like Hong Kong further enhances investor confidence.

Q: How can retail investors access digital asset services in Hong Kong?
A: Licensed brokers like Eddid Securities & Futures provide compliant gateways through mobile apps and online platforms offering ETFs, margin trading, and educational resources tailored for individual investors.

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Eddid Financial's two-year journey reflects a broader transformation underway in global finance—one where regulation meets innovation, and physical assets converge with digital efficiency. As Hong Kong continues to lead in Asia’s digital asset evolution, firms like Eddid are proving that sustainable growth lies at the intersection of trust, technology, and forward-thinking strategy.