The digital asset platform OSL Group (0863.HK) saw its stock surge 10% on Monday, reaching its highest level in nearly four years, following its announcement of acquiring Banxa, a Canadian cryptocurrency infrastructure company. This strategic acquisition marks another milestone in OSL’s aggressive global expansion, especially since its full transition to a digital asset-focused business model last year.
The deal was officially revealed late Friday and underscores OSL’s commitment to strengthening its international footprint through targeted acquisitions and regulatory compliance. As institutional demand for secure, compliant crypto services continues to rise, OSL is positioning itself at the forefront of the next wave of blockchain-driven financial innovation.
Strategic Expansion Through Acquisition
OSL Group has been actively pursuing overseas growth, having already secured a cryptocurrency exchange license in Australia and completed acquisitions in Japan and Europe. An additional transaction in Indonesia is expected to close next month. According to CFO Ivan Wong, the company plans to apply for operating licenses in three more jurisdictions this year.
“Global expansion will continue through both acquisitions and licensing,” Wong told Reuters, emphasizing that the Banxa acquisition accelerates OSL’s ability to offer seamless, low-cost fiat on- and off-ramps across multiple markets. These gateways are essential for enabling users to convert traditional currency into digital assets—and vice versa—efficiently and securely.
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Banxa specializes in building regulated payment infrastructure that connects banks, payment providers, and crypto platforms. By integrating Banxa’s technology, OSL enhances its capacity to serve institutional clients who require compliance-first solutions with scalable payment rails.
Targeting the Future of Cross-Border Payments
One of OSL’s core ambitions is to become a key player in cross-border payments—a sector ripe for disruption through blockchain technology. The company is preparing to launch its own stablecoin, a type of cryptocurrency pegged to fiat currencies like the U.S. dollar or Hong Kong dollar, ensuring price stability for transactions.
Hong Kong is set to implement a new regulatory framework for stablecoin issuers starting January 1, 2025. This upcoming regime introduces a licensing system requiring all stablecoins to be fully backed by legal tender, ensuring transparency and financial integrity.
Wong noted that stablecoins are gaining increasing traction among institutional investors due to their efficiency, speed, and reduced transaction costs compared to traditional banking systems. “Stablecoins are becoming more popular globally,” he said, adding that OSL intends to pursue licensing not only in Hong Kong but also in other major financial hubs such as Singapore and Luxembourg.
Regulatory Momentum in Hong Kong
The push toward formal stablecoin regulation reflects broader support from Hong Kong’s government. Financial Secretary Paul Chan recently highlighted the potential of stablecoins to improve cross-border transaction efficiency, particularly amid ongoing economic headwinds and geopolitical uncertainty in the region.
In late May 2025, Hong Kong’s Legislative Council passed a bill establishing a formal licensing regime for stablecoin issuers. The legislation received final approval on May 21 and mandates full reserve backing for all issued tokens. Regulators expect licensed operations to begin by the end of 2025 under the oversight of the Hong Kong Monetary Authority (HKMA).
This regulatory clarity positions Hong Kong as a leading jurisdiction for responsible digital finance innovation. For firms like OSL, it opens a clear pathway to compliance while fostering trust among institutional partners and global clients.
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Expanding Into Real-World Asset Tokenization
Beyond payments and stablecoins, OSL is deepening its involvement in real-world asset (RWA) tokenization—the process of converting physical or traditional financial assets like bonds, real estate, or commodities into blockchain-based digital tokens. This emerging trend promises greater liquidity, transparency, and accessibility in asset markets.
By leveraging blockchain technology, RWA tokenization allows fractional ownership and 24/7 trading of high-value assets that were previously illiquid or restricted to elite investors. OSL sees significant long-term potential in this space and is investing in infrastructure to support asset digitization across multiple jurisdictions.
FAQ: Understanding OSL’s Strategic Moves
Q: Why did OSL acquire Banxa?
A: The acquisition strengthens OSL’s global payment infrastructure by integrating Banxa’s regulated fiat on-ramp solutions. This enables smoother, compliant conversions between traditional currencies and digital assets, especially important for institutional clients.
Q: What are stablecoins, and why are they important?
A: Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to reserve assets like the U.S. dollar. They play a crucial role in reducing volatility in crypto transactions and are increasingly used in cross-border payments, trading, and decentralized finance (DeFi).
Q: Where is OSL seeking regulatory licenses?
A: OSL already holds a license in Australia and has operations in Japan and Europe. It plans to expand into three more regions this year, with a focus on Hong Kong, Singapore, and Luxembourg for stablecoin issuance under new regulatory frameworks.
Q: How does Hong Kong’s new stablecoin regulation work?
A: Starting January 1, 2025, all stablecoin issuers in Hong Kong must obtain a license from the HKMA. Tokens must be fully backed by high-quality liquid assets (e.g., cash or short-term government bonds), ensuring stability and investor protection.
Q: What is real-world asset (RWA) tokenization?
A: RWA tokenization involves representing tangible assets—like real estate or corporate bonds—as digital tokens on a blockchain. This increases liquidity, lowers entry barriers, and enables programmable finance features such as automated dividends or smart contract-based settlements.
Q: How does this acquisition affect OSL’s market position?
A: Acquiring Banxa boosts OSL’s technological capabilities and regulatory readiness. Combined with its focus on stablecoins and RWA tokenization, the move solidifies OSL’s status as a full-service digital asset platform with global ambitions.
👉 See how asset tokenization is transforming traditional finance with blockchain efficiency.
Core Keywords
- OSL Group
- Banxa acquisition
- stablecoin licensing
- Hong Kong regulation
- fiat on-ramps
- real-world asset tokenization
- cross-border payments
- digital asset platform
With its strategic acquisition of Banxa, OSL Group is not just expanding geographically—it’s building an integrated ecosystem that bridges traditional finance with the future of digital assets. From compliant payment gateways to regulated stablecoins and tokenized RWAs, OSL is aligning itself with global trends toward transparency, efficiency, and innovation in finance.