Huobi Trust Expands Compliant Virtual Asset Custody Services
According to official announcements from Hong Kong-listed Huobi Technology, its subsidiary Huobi Trust is actively developing regulated custody solutions for digital assets.
After receiving approval in April 2022 to operate as a trust company in Hong Kong, Huobi Trust began offering secure custody services for clients requiring asset protection and risk mitigation. Within just four months, the platform achieved a remarkable milestone—surpassing $1 billion in assets under custody by August 2022.
First Hong Kong-Listed Company to Launch Virtual Currency Funds
Huobi Technology made history as the first Hong Kong-listed firm to receive approval for virtual asset management. Key developments include:
- US Regulatory Approval: Huobi Trust US obtained a trust company license from Nevada's Financial Institutions Division
- Hong Kong Licensing: Secured Type 4 (securities advisory) and Type 9 (asset management) licenses under Hong Kong's SFO regulations
Fund Offerings: Launched five specialized investment products including:
- Bitcoin tracking fund
- Ethereum tracking fund
- Multi-strategy virtual asset fund
- Blockchain mining private equity fund
- Hybrid fund (10% digital assets/90% traditional assets)
👉 Discover how institutional investors are diversifying into crypto assets
Comparing Huobi Trust to Grayscale's Model
Grayscale Investments, established in 2013, has become the world's largest digital currency asset manager with:
- $37.4 billion in crypto assets under management
- 13 single-asset trust products
- Dominant positions in Bitcoin and Ethereum
Industry analysts see Huobi Trust positioned to fill Asia's institutional crypto custody gap, though challenges remain:
Growth Drivers and Market Potential
- Increasing institutional adoption of digital assets
- Mainstream financial institutions gradually entering crypto markets
- Strong demand from hedge funds and family offices
Current Challenges
- Regulatory uncertainties following China's crypto trading ban
- Liquidity constraints for trust products
- Limited participation from Asian institutional investors
Operational Milestones and Exchange Synergies
Huobi Trust's rapid growth stems from strategic advantages:
- Exchange Partnerships: Leveraging Huobi Global's user base for custody migrations
- Technical Infrastructure: Enterprise-grade security protocols
- Regulatory Compliance: Dual licensing in Hong Kong and Nevada
Notable achievements:
- Migrated H-series asset collateral to trust custody
- Established transparent asset verification processes
👉 Learn about secure digital asset custody solutions
Frequently Asked Questions
What services does Huobi Trust provide?
Huobi Trust offers regulated custody solutions for institutional clients and high-net-worth individuals needing secure storage for virtual assets.
How does Huobi Trust compare to Grayscale?
While both provide institutional crypto services, Huobi Trust focuses on Asian markets with different regulatory frameworks and product structures compared to Grayscale's US-based offerings.
Can mainland Chinese investors access Huobi Trust products?
Currently restricted due to China's capital controls and crypto trading prohibitions, though Hong Kong-based institutions may participate.
What are the risks of investing through crypto trusts?
Key considerations include regulatory changes, liquidity constraints, and the volatile nature of underlying digital assets.
How does Huobi ensure asset security?
The trust employs multi-signature wallets, institutional-grade custody protocols, and regular proof-of-reserve audits.
What's the minimum investment for Huobi's trust products?
Products are designed for professional investors, with minimums typically ranging from $100,000 to $1 million depending on the fund.
Future Outlook in Asia's Evolving Crypto Landscape
Despite recent regulatory headwinds, industry experts predict:
- Continued institutional interest in digital assets
- Expansion of compliant custody solutions
- Potential approval of crypto ETFs in advanced Asian markets
The $1 billion AUM milestone demonstrates strong market demand, though success will depend on:
- Navigating complex regulatory environments
- Developing secondary markets for trust products
- Expanding institutional participation beyond current adopters
As the digital asset ecosystem matures, Huobi Trust remains well-positioned to serve Asia's growing institutional crypto custody needs—provided it can maintain regulatory compliance and product innovation.