OSL Group's shares increased significantly following the announcement of the acquisition of Banxa. Analysts believe this move will help the company expand its reach in international markets.
Acquisition of Banxa
Shares of OSL Group (0863.HK) jumped 10% on Monday to their highest level in nearly four years after the digital asset platform announced the acquisition of Canadian crypto infrastructure firm Banxa. The deal was unveiled late Friday and is the latest in a series of overseas acquisitions by OSL, which has been aggressively expanding its digital asset business.
OSL's International Expansion
OSL's CFO Ivan Wong stated that the company will continue global expansion through both acquisitions and license applications. He noted that the Banxa purchase would help accelerate OSL’s entry into international markets and the growing institutional demand for crypto services. OSL aims to become a significant player in cross-border payments and is preparing to issue stablecoins.
Stablecoin Regulation in Hong Kong
Hong Kong’s regulatory framework for stablecoin issuers comes into effect on August 1. Financial Secretary Paul Chan noted that stablecoins could enhance the efficiency of cross-border transactions, particularly as the region faces economic challenges and geopolitical uncertainty. OSL already holds a crypto exchange license in Australia and plans to apply for licenses in three additional regions this year.
The acquisition of Banxa and plans for stablecoin issuance indicate OSL Group's continued active strategy on the international stage, potentially leading to increased interest in their services among institutional clients.
