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HashKey Group Launches a Bermuda-Based Global Crypto Exchange

HashKey Group expands with Bermuda-based global exchange

Hashkey Global begins to expand beyond Hong Kong with a broader goal of challenging Coinbase's global presence.

Key takeaways:

  1. HashKey Group has launched a global crypto exchange called HashKey Global based in Bermuda, following in the footsteps of Coinbase.
  2. The exchange aims to combine the user experience of Binance with the regulatory compliance and safety of Coinbase, with a goal to become the largest globally compliant exchange within the next five years.
  3. HashKey Global will offer spot and futures trading, staking services, a project launchpad, and liquidity providers, starting with 20 cryptocurrencies trading in Tether pairs.

HashKey Group, a crypto service provider, has followed in the footsteps of rival Coinbase by launching a global crypto exchange called HashKey Global, based in Bermuda. According to Ben El-Baz, managing director of Hashkey Global, the company chose Bermuda after witnessing Coinbase secure a license to operate its international exchange in the jurisdiction, stating: 

"We looked at all the different options, and we found that to be a very, very suitable and good regulatory regime for us to expand from."

El-Baz believes that in the wake of the FTX collapse in 2022, exchange users now have a better understanding of counterparty risk associated with exchanges. HashKey Global aims to fill a gap in the market by combining the user experience and product offerings of Binance with the regulatory compliance and safety measures of Coinbase. 

The company's long-term goal is to become the largest globally compliant exchange within the next five years, surpassing the volume of competitors like Coinbase International, which reported a 24-hour derivatives volume of $539.4 million.

Exchange offerings and capitalization

Unlike its Hong Kong-based counterpart, which was the first to obtain a license to operate in the region, HashKey Global will not serve Hong Kong, China, the United States, and several other regions. Over the next six months, the exchange plans to offer spot and futures trading, staking services, a project launchpad, and will have liquidity providers and market makers in place from day one to ensure market depth.

At launch, HashKey Global will be crypto-only, with 20 cryptocurrencies trading in Tether pairs, including Bitcoin, Ether, USD Coin, and Dogecoin. While El-Baz did not disclose the amount of money HashKey invested in the new exchange, he stated that the company believes it is adequately capitalized and that Bermuda has a strong awareness of the capitalization requirements needed for licensed institutions.

HashKey Group's expansion comes after its Hong Kong-based crypto exchange achieved unicorn status in January, raising nearly $100 million in a Series A funding round at a pre-money valuation of over $1.2 billion. The funds will be used to support the company's various business arms, including asset management, blockchain node validation, tokenization services, and a Web3 incubation arm.