In a strategic move to expand its global footprint, OSL Group (0863.HK) saw its shares surge 10% on Monday—reaching a four-year high—following its announcement to acquire Canadian crypto infrastructure company Banxa. The deal, finalized late Friday, marks the latest in OSL's series of overseas acquisitions as the firm pivots toward a fully digital asset business model.
Strategic Expansion and Market Entry
CFO Ivan Wong emphasized the company’s growth strategy:
"We will continue our global expansion through acquisitions and license applications."
The Banxa acquisition is expected to accelerate OSL’s entry into international markets, addressing rising institutional demand for crypto services.
Key Objectives:
- Cross-border Payments: Positioning OSL as a major player in global transactions.
- Stablecoin Development: Preparing to issue fiat-backed stablecoins under Hong Kong’s new regulatory framework, effective June 1.
- Licensing Push: Targeting approvals in Hong Kong, Singapore, and Luxembourg.
Hong Kong’s Regulatory Landscape
Financial Secretary Paul Chan recently highlighted stablecoins’ potential to enhance cross-border transaction efficiency—critical amid economic and geopolitical challenges.
New Stablecoin Bill:
- Passed final review on March 21.
- Introduces a licensing system for issuers.
- Mandates 100% fiat backing for all tokens.
👉 Explore how stablecoins are reshaping global finance
Global Licensing and RWA Tokenization
OSL already holds an Australian crypto exchange license and has completed acquisitions in Japan and Europe. An Indonesian deal is expected next month, with plans to apply for licenses in three additional regions this year.
Real-World Asset (RWA) Focus:
- Increased investments in tokenizing traditional assets (e.g., bonds, real estate).
- Aligns with institutional adoption trends.
FAQ Section
Q: Why did OSL acquire Banxa?
A: To accelerate international market access and meet growing institutional crypto service demand.
Q: What’s OSL’s stablecoin strategy?
A: Leveraging Hong Kong’s new regulatory framework to issue fiat-backed stablecoins for cross-border payments.
Q: Which regions are next for OSL’s licensing?
A: Singapore, Luxembourg, and undisclosed markets—with Indonesia nearing completion.
Q: How does RWA tokenization fit OSL’s plans?
A: It bridges traditional finance with digital assets, appealing to institutional investors.