Bitfire flags HK$245M loss as it steps up stablecoin push in Hong Kong

Hong Kong crypto firm Bitfire is pressing ahead with a stablecoin-focused strategy even as it warns of a sharply wider loss, framing the move as central to its institutional expansion. Bitfire said on May 21 it expects a net loss of up to HK$245 million (about US$31.3 million) for the six months through March 2026, around 19 times the HK$12.3 million loss recorded in the same period a year earlier. The company blamed the deterioration mainly on a HK$152 million mark-to-market decline in its crypto asset holdings. Increased spending on professional services, customer capabilities and R&D also weighed on results. CEO Livio Weng has positioned stablecoins as a "core pillar" of Hong Kong's Web3 ecosystem. Bitfire plans to prioritise integrating compliant Hong Kong stablecoins into its clearing and settlement systems, aiming to serve as an access and distribution channel for institutions rather than an issuer. Following a strategic upgrade in August 2025, the company said it has onboarded hundreds of institutional and ultra-high-net-worth clients, with many requesting stablecoin-related services. Regulatory developments are shaping the opportunity set. The Hong Kong Monetary Authority (HKMA) issued the first batch of stablecoin issuer licences in April 2026, granting approvals only to HSBC and Standard Chartered. The limited initial rollout narrows the pool of issuers while potentially increasing demand for compliant integration and custody offerings. Bitfire said it holds SFC Types 1, 4 and 9 licences, as well as a Trust and Company Service Provider licence. The company argues this regulated footing positions it to compete in a compliance-heavy market that may be more challenging for larger global exchanges to penetrate. Market watchers see Bitfire's higher spend on professional services and R&D as infrastructure buildout targeted at institutional stablecoin demand that Hong Kong's issuer licensing pace has yet to fully meet. The firm's licensed virtual asset manager status could prove advantageous as financial institutions look for compliant pathways to use stablecoins, alongside broader HKMA efforts to tighten rules for virtual asset dealers and custody. Weng also used the 9th World Financial Forum annual meeting on May 21 to discuss an AI-integrated Web3 roadmap and a potential "Web4" concept, underscoring ambitions beyond trading. Bitfire is absorbing near-term pressure in pursuit of a potentially lucrative institutional stablecoin market in Hong Kong. The payoff will hinge on how quickly the local stablecoin ecosystem and licensing regime develop.