Hong Kong's Stablecoin Push Sparks Fierce Race Between Futu and Up Fintech for Asia's Crypto Crown

Hong Kong is stepping up its game in the crypto world, and two brokers are racing to claim the title of Asia's Robinhood. The city's new stablecoin legislation, which went live last Friday, aims to create a clearer regulatory framework for issuing and managing stablecoins-cryptocurrencies pegged to government-issued currencies.

This move is seen as a play to attract more institutional players into the digital asset space. Morgan Stanley has its eyes on Futu Holdings (NASDAQ: FUTU), touting it as a prime beneficiary with a price target nudging $164.25 and an overweight rating. Meanwhile, Citi's analysts are more bullish on Futu's competitor, Up Fintech (NASDAQ: TIGR), also known as Tiger Brokers. Citi recently bumped Up Fintech's rating from neutral to buy, raising their price target from $9.50 to $14, though they kept Futu at neutral despite giving it a price target boost to $176.

What connects the two? Both newcomers to the U.S. public markets back in 2019 and both rooted in mainland China's bustling tech scene, though they've pivoted their focus to Hong Kong and Singapore to sidestep Beijing's strict crypto clampdown and capital controls. The combined crypto trading market in these hubs clocks in at around $640 billion, a heavyweight sum that even licensed exchanges struggle to capture fully.

Analysts see Up Fintech and Futu potentially mirroring Robinhood's ascent, especially given the latter's recent crypto-driven revenue surge. Robinhood's crypto revenue doubled year-over-year in Q1 2025, now accounting for 21% of its entire business-a sharp leap from just 3% five years earlier. That's a significant shift fueling the online brokerage's valuation.

Up Fintech's case gets a little extra spice thanks to Avenir Group, an investment firm tied to Huobi's founder. Avenir snapped up a 5.9% stake in Up Fintech back in April, opening the door for collaboration. Citi speculates that if Avenir designates Up Fintech as its go-to exchange for OTC crypto trades or even as its custodian bank-earning hefty fees in the process-that could pave the way for solid growth in Up Fintech's crypto division.

Of course, the crypto world in Hong Kong is playing out differently than in the U.S. Beijing still plays hardball with cryptos on the mainland, but Hong Kong, as a special administrative region, is testing the waters for a more progressive financial future. The city's stablecoin initiative seems geared at boosting the yuan's usability in international transactions, a strategic move that may reshape flows in Asia's crypto markets.

One detail adding some color: Eric Trump is slated to headline a bitcoin conference in Hong Kong next month, signaling the city's ambition to establish itself as a global hub for the crypto crowd-not just a regional player.