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Hong Kong cryptocurrency custodian Hex Trust targets profitability, fresh funding in 2024 as virtual-asset market rebounds
- After cutting costs throughout 2023, Hex Trust sees the cryptocurrency market’s revival ‘directly translating into profitability’ for the firm
- Hex Trust chief executive Alessio Quaglini said the company also plans to start discussions on a new funding round
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Hong Kong-based cryptocurrency custodian Hex Trust is looking to turn a profit and raise fresh funding on the back of a recovery in the virtual-asset market, despite potential regulatory headwinds that could affect the company’s operations in the city.
Hex Trust, a seven-year-old virtual-asset custody services provider to institutions, expects to become profitable this year after cutting costs in 2023 amid a surge in cryptocurrency prices in recent months, co-founder and chief executive Alessio Quaglini told the South China Morning Post in a recent interview.
“There’s been a real shift from September and October till now,” Quaglini said. “We see more trading volumes and we see more appetite for risky assets.”
After cutting costs by about 20 per cent throughout 2023, Hex Trust sees the cryptocurrency market’s revival “directly translating into profitability” for the company, he said.
Hex Trust’s positive outlook shows a renewed confidence in the local cryptocurrency market amid a 50 per cent surge in bitcoin prices since the start of this year, while the Hong Kong government continues its push to expand regulation of the broader virtual-asset industry.
The government last year put in place a mandatory licensing regime for centralised cryptocurrency exchanges to serve retail investors. Efforts are now focused on pushing bills on licensing rules for over-the-counter (OTC) cryptocurrency trading services and stablecoin issuers to the Legislative Council.
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