On June 13, 2025, Alma, founder of Techub News, interviewed Kennix, the promoter of Victory Securities' virtual asset business. This conversation revealed the transformation courage and profound heritage of Hong Kong's old brokerage firm in the field of cryptocurrency. As the third-generation inheritor of the family business, Kennix has continued the 54-year financial gene of Victory Securities, and has opened up a new world of Crypto with his youthful vigor and persistence in compliance. His feelings for Hong Kong - his sense of mission to bring liquidity back to Hong Kong through innovative products - run through the conversation, which is moving. From personal lessons from the collapse of FTX to unique insights into RWA and stablecoins, Kennix shows the infinite possibilities of the integration of traditional finance and Crypto. His frank and pragmatic answers outline the image of a down-to-earth but visionary industry pioneer. This conversation not only reveals the transformation story of Victory Securities, but also adds expectations for the future of Hong Kong as a global virtual asset center.

Since its establishment in 1971, Victory Securities has gone through 54 years of ups and downs and has become a benchmark in the Hong Kong financial market. Today, this old brokerage firm has reshaped itself as a Crypto brokerage firm, with a trading volume exceeding HK$10 billion, leading the licensed brokerage firms in Hong Kong. How does Kennix combine family heritage with emerging markets? How does Victory Securities find a balance between compliance and innovation? The following 15 questions will take readers into the transformation journey of Victory Securities and reveal the future prospects of Hong Kong's virtual asset market - don't miss it!

Alma: Victory Securities' recent cryptocurrency trading volume exceeded HK$10 billion, making it the number one licensed securities firm in Hong Kong. What unique advantages do you think Victory Securities has relied on to stand out? What other aspects are you still working hard to do better?

Kennix: We can be the number one in trading volume, mainly because of three advantages. First, the leading license . On November 24, 2023, we became the first brokerage firm approved by the Hong Kong Securities and Futures Commission (SFC) to conduct retail crypto transactions, seizing the first-mover advantage and leading our peers by 6 to 8 months. Second, 54 years of financial experience in Hong Kong has enabled us to be well versed in supervision and market rules, and to quickly launch innovative products, such as physical Bitcoin delivery, stablecoin subscription of Bitcoin funds, and the green energy swap RWA project and virtual asset structured products in cooperation with Ant Group. Third, we are positioned as a Crypto brokerage firm , investing tens of millions of dollars to acquire mainland technical teams, independently develop products, get rid of outsourcing restrictions, and iterate faster. Among the more than 600 brokerage firms in Hong Kong, more than half rely on outsourcing systems, and innovation is limited. Our own technical capabilities are our core competitiveness.

As for the room for improvement, there are still few categories of virtual asset products in Hong Kong, and spot trading is currently the main focus. We are working hard to launch new businesses such as structured products, lending, and OTC to enrich the ecosystem and keep funds in Hong Kong, rather than just doing deposit business.

Alma: Based on the information you have obtained, what are the characteristics of users who trade cryptocurrencies compared to users who trade traditional securities? What is the overlap between the two?

Kennix : Our users are mainly middle- and high-net-worth Asian clients aged 30-45, with half each being traditional financial and half being Crypto-native. Traditional clients are mostly executives of listed companies or family offices, who prefer compliance and security; Crypto-native clients include miners, cryptocurrency enthusiasts, etc., who are more sensitive to market fluctuations. The total number of active virtual asset clients is in the five digits, mainly in Hong Kong and Southeast Asia. The overlap between the two types of clients is about 50%. Traditional clients are gradually accepting encrypted assets, while Crypto-native clients are also beginning to pay attention to our wealth management services. We are more like a private bank, providing customized products to meet the needs of both.

Alma: Shengli Securities has been very quick to embrace cryptocurrencies. How do you respond quickly and keep up with the market in such an emerging field?

Kennix : The core of quick response is genes and resources. 54 years of financial experience in Hong Kong has made us familiar with regulation and able to quickly bring innovative products into compliance, such as communicating with the SFC to launch physical Bitcoin delivery or RWA projects. The collapse of FTX in 2022 had a great impact on me. I suffered personal losses in FTX and realized the importance of a compliant platform, which prompted us to accelerate our layout. We began planning our virtual asset business in 2019, officially launched in 2021, and quickly connected with HashKey and OSL exchanges after obtaining the license in 2023. In addition, the acquisition of the mainland technical team allows us to independently develop products, such as the coin-in and coin-out functions, leading the market.

Alma: Can mainland customers use Shengli Securities' coin-in-coin-out product?

**Kennix: **Our coin-in-coin-out product service scope strictly complies with the regulatory requirements of the Hong Kong Securities and Futures Commission (SFC), and is currently mainly aimed at customers in Hong Kong and other qualified overseas markets. According to current policies, residents of mainland China are not among the target service objects.

During the customer identity verification process, we will ask for compliance documents including proof of address and conduct strict review according to regulatory requirements. If a customer holds proof of overseas residence and meets all compliance conditions, we will further evaluate the case, but it must be emphasized that all operations are subject to compliance with local regulations.

Shengli Securities always puts compliance first and continuously communicates with regulators to ensure that its business complies with the latest guidelines.

Alma: You mentioned that the collapse of FTX had a great impact on you personally. How did this affect Shengli Securities' determination in the field of compliance?

**Kennix: **The collapse of FTX touched me deeply. In September 2022, I had just returned from Token2049 in Singapore and participated in the VIP event of FTX, but it went wrong. This personal loss on FTX made me realize that in the Crypto world, compliance is not an obstacle, but a protection. When no one can help you, the accountability of a compliant platform becomes particularly important. This has prompted us to accelerate the layout of our virtual asset business, which began planning in 2019, launched in 2021, and obtained a license in 2023. We hope to provide customers with a safe and compliant trading environment and solve the credit problems of counterparties, just as we do in traditional finance.

Alma: HK$10 billion is an important milestone, but compared with offshore traditional crypto exchanges or on-chain DeFi, the gap is still obvious. Do you think that compliant brokers or exchanges can compete with Binance in the future? Is strict compliance a shackle or a destination?

**Kennix: **Compared with non-compliant exchanges such as Binance, compliant brokerages currently have fewer product categories and are currently facing challenges in competition. However, in the long run, global regulation is becoming stricter, and non-compliant exchanges will either obtain licenses or develop in a low-key manner, and the space will shrink. Institutional investors prefer the security and accountability of compliant platforms. For example, we use a trust structure to ensure the safety of the principal of structured products, and even if the issuer runs away, it will not affect the customers. VDX, an affiliate of Victory Securities, is applying for a No. 7 license (exchange license). In the future, as Hong Kong regulators liberalize derivatives, lending, etc., our competitiveness will be enhanced. Compliance is not a shackle, but the key to open the entry of institutional funds.

Alma: As the first trading platform in Hong Kong that integrates stocks and cryptocurrencies, VictoryX has invested over 10 million Hong Kong dollars in research and development. Can you introduce the research and development focus? What are the unique designs for the user experience for investors?

**Kennix: **VictoryX's research and development focuses on independent technical capabilities and compliance innovation. We invested tens of millions of yuan to acquire a mainland technical team, solving the problems of slow response and difficult upgrades of outsourced systems. The core achievements include the coin-in and coin-out function, which is a first in Hong Kong. It supports spot transactions such as BTC, ETH, LINK, AVAX, etc. in compliance. Professional investors (PI) can also trade cryptocurrencies such as USDT, USDC, SOL, TON, etc. Currently, it supports ERC20 chains and some TRC20, and more chains will be supported with exchanges in the future. For investors, VictoryX integrates stocks and cryptocurrencies to provide a one-stop experience, with high security (such as trust structure to protect the principal), smoother deposits and withdrawals, and is more popular with medium and high net worth customers than non-compliant platforms such as Binance.

Alma: What efforts has Shengli Securities made in investor education? How does it help clients understand the volatility of the Crypto market?

**Kennix: **The cryptocurrency market is very volatile, and we attach great importance to investor education. Over the past year or so, we have held at least one offline event every month, rain or shine, including investment seminars and exchanges, as well as online events. Whenever a new product is launched or there is a major market dynamic, we organize internal training and synchronize information with customers. In addition, we publish market reports every month to help customers understand market trends. We also cooperate with the industry, such as providing Crypto CPT training courses for securities associations, and even developing internal certification courses to encourage in-depth learning for the team and customers. These efforts are aimed at allowing customers to invest rationally and cope with the complexity of the Crypto market.

Alma: Will Shengli Securities consider integrating tokenized RWA assets into its products or even expanding to DeFi in the future?

**Kennix: **Definitely. RWA is the DNA of the Hong Kong capital market. We have cooperated with Ant Group on the green energy swap project and served as the fund manager. Through the fund structure, we will integrate the income of mainland energy assets with the structure.

Overseas, the on-chain part is completed by the affiliated exchange VDX and Ant Digits. We are optimistic about three types of RWA: strong cash flow assets (such as fixed income products), high growth assets (such as IP-related, movie box office tokenization), and high liquidity assets (such as gold, carbon credits). There are currently three RWA projects in progress, one plans to develop a secondary market, or make up for the exchange's listing restrictions through OTC. DeFi will also be considered, but it needs to be explored within the compliance framework.

Alma: Shengli Securities plans to launch structured products in the near future. Can you tell us about their design? Are they aimed at institutions or ordinary investors? How to balance high returns and risks ?

**Kennix: **We will launch structured products this month, such as dual-currency wealth management. Customers can earn interest by depositing Bitcoin, similar to selling options, with a short cycle (starting from 14 days) and a low investment threshold (US$100,000). The products are aimed at PI customers. The principal is ensured to be safe through a trust structure, and even if the issuer runs away, it will not affect the customer. The design focuses on high liquidity and compliance fund security. The rate of return depends on market fluctuations, but the risk is controlled through structured design (such as interval locking). Compared with traditional funds, it is more flexible and has lower costs.

Alma: You have suggested allocating 5% or more of funds to virtual assets. In the current turbulent macro environment, do you still hold this view? How should ordinary investors start investing in cryptocurrencies and choose targets?

Kennix : I still stick to an allocation of 5% or more. Diversified asset allocation is the key. All clients who invested in Crypto in the past year have made money. Even if the macro environment is turbulent now (such as the Iran conflict), the long-term potential is still huge. Ordinary investors should do their homework first, trade in person to understand the market, and give priority to Bitcoin. I think it is an anchor for virtual assets and has a more stable trend. Choose a compliant platform such as VictoryX to ensure asset security and liquidity.

Alma: You mentioned that you hope to bring liquidity back to Hong Kong through innovative products. What specific measures has Victory Securities taken in this regard?

**Kennix: **Bringing liquidity back to Hong Kong is one of my biggest responsibilities. Currently, the virtual asset market in Hong Kong mainly does deposit business, and funds are lost very quickly. To become a global virtual asset center, more products must be available to retain funds. We have launched a number of pioneering products, such as coin-in and coin-out functions, physical Bitcoin delivery, green energy swap RWA in cooperation with Ant Group, and structured products that accept Bitcoin. In the future, we plan to launch 4-6 products, including derivatives, lending, OTC and DAMS services. At the same time, our affiliated company VDX is applying for a Type 7 exchange license, with the goal of creating a complete ecosystem through innovative and compliant products to allow funds to flow in Hong Kong.

Alma: What do you think of the recently popular stablecoins? Will Hong Kong "get up early but arrive late" in the field of stablecoins?

Kennix: Stablecoins have a bright future in Hong Kong. I believe that they can be used for stock settlement, daily payments, etc. in the near future, replacing intermediaries, improving efficiency and reducing costs. Hong Kong dollar stablecoins will definitely be issued, but offshore RMB stablecoins have more potential and will help the internationalization of the RMB. At present, Hong Kong has room for regulation of stablecoins and supports the development of multiple fiat stablecoins, unlike the United States, which explicitly requires US dollar stablecoins to purchase US debt. Hong Kong needs to seize opportunities in the development of stablecoins and enrich application scenarios in order to move further towards the world's virtual asset center.

Alma: In addition to cryptocurrencies, what new plans does Shengli Securities have in terms of products in the future?

**Kennix: **We plan to launch 4-6 products in the second half of the year, including structured products, lending, OTC and DAMS related services. We have been approved by the SFC to provide virtual asset full-power account management services (DAMS) and will launch customized asset management products. In terms of RWA, we will continue to promote IP, gold and other projects and explore the secondary market. Although we have not directly developed AI, we encourage the team to apply AI technology and explore the compliance scenarios of finance and Crypto, which may have a clearer direction in the future.

Kennix's sharing shows the transformation courage of Victory Securities from an old brokerage to a Crypto pioneer. From taking the lead in compliant trading to innovating RWA and structured products, Victory Securities focuses on technology and compliance, and is committed to bringing liquidity back to Hong Kong and helping to build a global virtual asset center. In the face of the rapidly changing Crypto market, Kennix's advice is thought-provoking: only by trading in person and keeping up with the trend can you avoid being eliminated. Looking forward to more breakthroughs in the field of virtual assets by Victory Securities!