Deribit Aims to Expand in Hong Kong as City Seeks to Become a Digital Asset Center

Deribit, the largest cryptocurrency derivatives exchange globally, is aiming to expand into Hong Kong as the city intensifies its efforts to become a leading center for digital assets.

The Dubai-based firm is attracted to Hong Kong’s status as a global financial center and the growing interest in cryptocurrencies among family offices and asset managers.

“Hong Kong is a pivotal financial hub worldwide and a significant player in Asia,” remarked Jean-David Pequignot, Deribit’s Chief Business Officer, who is based in the city.

“If regulators address the derivatives sector, it’s a market we would like to enter.”

Deribit Targets Hong Kong Expansion as SFC Reveals Digital Asset Roadmap

Deribit’s expansion strategy coincides with the unveiling of a comprehensive roadmap by Hong Kong’s Securities and Futures Commission (SFC) aimed at enhancing the city’s digital asset ecosystem.

A crucial element of this plan involves investigating the introduction of digital asset derivatives designed for professional investors with portfolios exceeding HK$8 million (approximately US$1 million).

Currently, Hong Kong’s regulatory framework focuses on licensing but lacks provisions for trading crypto derivatives.

Pequignot emphasized that while derivatives are often viewed as speculative, they are vital tools for hedging and risk management.

“They enable investors to manage volatility in the crypto markets,” he stated.

Deribit specializes in bitcoin and ether options, allowing traders to buy or sell assets at a predetermined price within a specified timeframe.

“Asia represents a significant market for derivatives, with sophisticated and speculative investors,” Pequignot explained. “We aim to establish a presence in Asia, provided we can comply with regulatory requirements.”

While Singapore remains a prominent Asian financial center, it has yet to implement a regulatory framework for crypto derivatives, positioning Hong Kong to seize the opportunity.

The roadmap, referred to as ASPIRe, centers on five pillars:
Access
Safeguards
Product
Infrastructure
Relationships
This is a comprehensive initiative to integrate crypto within Hong Kong’s financial ecosystem.

— Galaxy (@galaxyhq) February 23, 2025

Pequignot noted the increasing interest from family offices and asset managers based in Hong Kong, many of whom are key trading partners for Deribit.

“We are observing a rising demand for derivatives products in the crypto sector, driven by knowledgeable individual investors, hedge funds, and institutional players,” Pequignot added.

Deribit Reports 95% Increase in Trading Volume, Reaching $1.2 Trillion in 2024

Deribit’s growth trajectory has been robust.

In 2024, the exchange recorded a 95% year-over-year increase in trading volume, reaching US$1.2 trillion.

This surge was supported by optimism surrounding the U.S. presidential election and bitcoin’s subsequent rally towards the US$100,000 threshold.

Looking ahead, Deribit is also focusing on the U.S. market, particularly as former President Donald Trump’s crypto-friendly position may encourage favorable regulations.

“We are eager to serve the U.S. market once an appropriate framework is in place,” Pequignot stated.

Founded in 2016, Deribit is actively engaging with regulators in France and Brazil to obtain derivatives licenses.

Last year, Hong Kong legislator Wu Jiexhuang proposed utilizing the city’s “one country, two systems” framework to include Bitcoin in its national reserves, aiming to enhance financial security.

Several companies in Hong Kong have also adopted a Bitcoin reserve strategy.

Recently, HK Asia Holdings Limited announced that it increased its Bitcoin holdings, acquiring approximately 7.88 BTC, following approval from the company’s board.

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