HashKey on-boards market makers to boost liquidity
HashKey, a licensed crypto exchange in Hong Kong, has unveiled plans to onboard individual and enterprise market makers to enhance liquidity on its platform.
Market maker program
In an announcement on Tuesday, the exchange disclosed that interested parties, whether individuals or entities, can apply to become market makers on HashKey. To qualify, applicants need to engage in cryptocurrency trading worth a minimum of $5 million per month on the exchange.
The exchange outlined that the program aimed to “recognize and incentivize users actively contributing to the liquidity” of the platform.
Upon submitting their business plans for review, successful applicants will be invited to enter into a contractual agreement with the exchange’s due diligence team, commencing trading activities from Dec. 28 onwards when the program goes live.
Commission free trading
The exchange aims to encourage liquidity providers by offering a commission ranging between 0.005% and 0.015% of the transaction value, determined by monthly rankings or trading volumes, falling within a tiered structure set out within the program. Market makers demonstrating a trading volume of at least $100 million per month stand to enjoy the highest tier of commission revenue. Notably, all market makers will be exempt from commission fees on their trades.
Market makers who participate via the program will be on trial for an initial two-month period. Those who are participating in market maker programs on other platforms currently will be able to avail of equivalent trial fee rates through the HashKey exchange.
Service expansion trend
The move by HashKey follows a broader trend in Hong Kong, where regulated exchanges have been expanding their services and forming strategic partnerships since the issuance of the first licenses in August. In a recent development, OSL, another Hong Kong licensed exchange, collaborated with Interactive Brokers on November 28, enabling Hong Kong clients to buy Bitcoin through Interactive Brokers’ investment accounts.
Additionally, on November 30, OSL welcomed Victory Securities for crypto trading services on its platform. That move came about following Victory’s acquisition of a retail crypto trading license some days beforehand. Notably, OSL received a $90 million investment from blockchain entity BGX in November.
While HashKey has been extending its altcoin offerings, exclusively available to accredited investors meeting a $1 million portfolio requirement, the exchange has been proactive in enhancing user security. On Nov. 16, the platform introduced comprehensive insurance coverage for users’ and enterprise assets stored within its digital wallets in collaboration with fintech firm OneDegree.
Earlier this week, it emerged that the platform had experienced an unprecedented surge in daily trading volumes. The surge had been attributed to a token rewards program that the exchange is currently running, that offers the distribution of HSK tokens or EcoPoints.
As HashKey opens its doors to market makers, the move is poised to contribute to increased liquidity on the exchange, aligning with the broader trend of Hong Kong’s regulated crypto exchanges expanding their offerings and forming strategic partnerships.
