Hong Kong Firm Seeks to Reinvent Itself by Offering Crypto Financing

Hong Kong fintech firm Arta TechFin is seeking approval from the Securities and Futures Commission (SFC) to amend its license to offer cryptocurrency financing and other blockchain-backed financial services.

Arta is the successor of Hong Kong-listed brokerage Freeman Fintech which was rescued last year by New World Development chief executive Adrian Cheng Chi-kong.

The company wants to reinvent itself as a “hybrid finance” player in its latest move.

“We see an opportunity for us to combine virtual asset servicing with traditional financial services. Very few traditional brokers and banks have expanded into crypto assets,” Arta Chief Executive Eddie Lau said.

Freeman Fintech provided securities, futures, and insurance brokerage before its rescue. The company acquired a number of its licenses when it transitioned to Arta TechFin, allowing the surviving company to engage in various financial services, including asset management, lending, and securities dealings.

Arta TechFin wants introduce blockchain technology into traditional fintech

Arta TechFin wants to expand its operations to family offices, retail clients, and small and medium-sized enterprises (SME). Its SFC license allows it to provide blockchain and data services to family offices and hedge funds and assist in automating their workflow and restructuring their financial data to save on operational costs.

Currently, the company is testing a blockchain-powered lending system that allows family offices to provide private lending to SME borrowers.

Last month, Arta TechFin completed a strategic partnership with fintech solutions provider Atlanfic Technology to offer licensed investment managers and family offices a SaaS-based asset management solution. The deal aims to automate business workflows. 

“Arta TechFin aspires to build the next generation of financial services. This Arta-Atlanfic partnership forms the foundation of revolutionary transformation for our clients. ARTA initiatives will also include blockchain development and applications across brokerage, asset management, and insurance. We hope to offer our clients a ludic and immersive experience in managing their wealth,” said Lau.

Hong Kong has been trying to rein in cryptocurrency trading. Last month it announced a stringent licensing rule that limits the number of transactions per client.