Hong Kong Crypto Market Sees HashKey Lead as Losses Widen Ahead of IPO

HashKey Dominates Hong Kong Crypto Market but Faces Heavy Losses Ahead of IPO

HashKey has become Hong Kong’s largest licensed crypto exchange, but its IPO filing reveals significant financial pressures. Despite surging trading volumes, ultra-low fees—kept under 0.1%—have left revenue far below what’s needed to offset steep losses.

The filing shows HashKey processed HK$638.4 billion (~$82 billion) in 2024, roughly double the previous year, as both institutional and retail users drove Hong Kong platform growth. The firm now commands about 75% of the local market, yet its low-fee strategy contributed to a net loss exceeding $151 million (HK$1.18 billion).

HashKey’s Bermuda exchange, aimed at a global audience, saw volumes collapse from $23 billion in H1 2024 to $1.4 billion a year later, attributed to delayed on-off ramps and reduced marketing.

Efforts to diversify into tokenization, staking, and Web3 events remain limited. Tokenization revenue totaled $0.9 million in 2024 and dropped to $140,000 in H1 2025, while Web3 events brought in $4.8 million in 2024 and $3 million in early 2025.

The filing highlights a dominant exchange with market reach but underlines thin fees, modest non-trading revenue, and declining offshore activity. Investors will weigh whether HashKey’s current model can sustain profitability. The company competes with Bullish, CoinDesk’s parent.