ZA Bank’s 70K Customers to Soon Trade US Stocks

ZA Bank, based in Hong Kong, recently revealed its intentions to offer US trading facilities after completing its testing phase. As per the bank’s strategy, its app will offer various US-listed investment tools like stocks, ETFs, and ADRs.

License Limitations Lifted, New Services Announced

The Securities and Futures Commission (SFC), Hong Kong’s regulatory body, recently removed certain restrictions on ZA Bank that previously barred it from dealing in collective investment schemes. A report by Finance Magnates confirms that SFC granted the digital bank a Type 1 regulated activity license in January 2021. However, ZA Bank has been under certain binding conditions till recently.

ZA Bank’s CEO, Ronald Iu, stated that the bank was building a ‘future bank for now’ aimed at facilitating users in realizing their financial goals with ease and comfort. We provide access to the world’s largest stock market, helping users leverage growth in influential companies. It is a significant stride towards our goal of building a comprehensive digital finance platform,” he said.

Digital Banks on the Rise in Hong Kong

Hong Kong, like many other countries, has seen a surge in the number of virtual banks. These banks are monitored by the Hong Kong Monetary Authority (HKMA), which started issuing licenses to virtual banks in 2019. ZA Bank, a branchless bank, has a user base exceeding 700,000. It initiated its investment services in August 2022. 

It has teamed up with leading fund managers, including AllianceBernstein, Allianz Global Investors, and J.P. Morgan Asset Management, offering more than 100 fund investment products.

The digital bank aims to exploit Hong Kong’s efforts to attract crypto businesses. It’s one of the few willing to offer fiat currency deposit and withdrawal services to licensed cryptocurrency companies.

User Review
0 (0 votes)


Leave a Reply