Hong Kong-listed Chinese technology firm Meitu has tapped digital asset brokerage OSL Digital Securities as its trade execution and custody partner in the purchase of approximately 175 units of Bitcoin valued at US$10 million. The smartphone and app maker, based in Xiamen, Fujian province, now holds US$100 million worth of Bitcoin and Ethereum on its balance sheet, according to reports.
“Friction in investing in digital assets such as cryptocurrencies is reducing rapidly with clearer regulatory frameworks and seasoned professionals joining the blockchain industry from the traditional financial sector,” Meitu chief financial officer Gary Ngan says, noting that OSL DS is the first digital asset exchange licensed by the Hong Kong Securities and Futures Commission (SFC).
Meitu selected OSL DS as its partner in the transaction “on the strength of its institutional-grade regulatory compliance and security”, according to OSL head of institutional sales Ryan Miller.
The Meitu transaction follows OSL DS' execution of the first customer trades via its licensed trading desk on March 15. OSL DS holds an SF licence for Type 1 (dealing in securities) and Type 7 (automated trading service) regulated activities related to digital assets.
The OSL platform utilizes a modular interface where institutional and professional investors can buy, sell and securely store digital assets, such as Bitcoin, Ethereum and selected security tokens.