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Solowin Announces Strategic Partnership with MaiCapital to Expand Virtual Asset Allocation Opportunities

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Solowin Holdings (Nasdaq: SWIN) announced a strategic partnership with MaiCapital to expand virtual asset allocation opportunities. Solowin acquired a 2.47% equity stake in BA Fintech Lab, the parent company of MaiCapital. This partnership aims to leverage combined resources and licenses to meet growing investor demand for virtual assets. Solowin will utilize MaiCapital's expertise in managing 100% virtual asset funds, complementing Solowin's licensing for trading virtual assets. CEO Thomas Tam emphasized the significance of this collaboration in the context of Hong Kong's evolving virtual asset market, highlighting the approval of the first spot virtual asset ETFs and Solowin's role in facilitating ETF processes.

Positive
  • Acquisition of a 2.47% equity stake in BA Fintech Lab indicates strategic investment.
  • Partnership leverages combined resources and licenses to meet investor demand.
  • MaiCapital's SFC license to manage 100% virtual asset funds complements Solowin's trading license.
  • Collaboration enhances asset management services for virtual assets.
  • Participation in the first spot virtual asset ETFs approved by SFC strengthens market position.
Negative
  • Equity stake acquired is relatively small at 2.47%, limiting influence.
  • Dependence on regulatory approval and market acceptance of virtual assets.

Solowin's strategic partnership with MaiCapital marks a significant development in the virtual assets sector. By acquiring a <2.47%> equity stake in BA Fintech Lab, Solowin is positioning itself to leverage MaiCapital's expertise and regulatory licenses. This move can be seen as a calculated step to diversify its portfolio and cater to the growing investor demand for virtual assets, particularly in the Hong Kong market.

This partnership aligns well with the broader industry trend where traditional financial institutions are increasingly embracing digital assets. The collaboration aims to enhance business synergies through resource and license sharing, which could potentially lead to more integrated and seamless virtual asset management services.

In the short term, investors might see increased volatility in Solowin's stock as the market reacts to the news. However, in the long term, if the collaboration proves successful, it could solidify Solowin's position in the virtual assets market, leading to sustained growth and expanded revenue streams.

One important aspect to monitor will be the effectiveness of this partnership in navigating the regulatory landscape of virtual assets, particularly given the evolving nature of such regulations. Additionally, investors should keep an eye on how well Solowin integrates MaiCapital's virtual asset management practices into its existing framework.

The strategic partnership between Solowin and MaiCapital is noteworthy as it taps into the increasing demand for virtual assets among investors. This demand has been fueled by growing acceptance of virtual assets as legitimate investment vehicles and the development of supporting financial infrastructure, like spot virtual asset ETFs, which Solowin is actively participating in.

From a market perspective, this collaboration allows Solowin to offer a more diversified range of virtual asset products, potentially attracting a broader customer base. This is a critical advantage as it can help the company establish a more resilient and competitive market position, particularly against other financial service providers that are slower to adapt to virtual asset trends.

Investors should consider how this partnership might differentiate Solowin in a crowded market. If successful, the company could capture a significant share of the virtual asset management market in Hong Kong, which is poised for growth given the regulatory support and increasing investor interest.

However, it is essential to remain cautious due to the inherent volatility and speculative nature of virtual assets. The success of this strategic move will depend on effective execution and the ability to deliver tangible benefits to investors through combined resources and expertise.

HONG KONG, May 28, 2024 (GLOBE NEWSWIRE) -- SOLOWIN HOLDINGS (Nasdaq: SWIN) (“Solowin” or “the Company”), a securities brokerage company that offers comprehensive financial services primarily to Chinese investors globally, today announced a strategic partnership with MaiCapital Limited (“MaiCapital”), a leading virtual assets investment manager in Hong Kong, to expand virtual asset allocation opportunities.

Under the terms of the strategic partnership, Solowin agreed to acquire 199,210 ordinary shares representing a 2.47% equity stake in BA Fintech Lab, an exempted company incorporated under the laws of Cayman Islands that conducts business through its wholly owned subsidiary MaiCapital.

Solomon JFZ (Asia) Holdings Limited (“Solomon”), Solowin’s operating subsidiary, and MaiCapital agree to combine their considerable resources and licenses to maximize business synergies and capitalize on opportunities created by growing investor demand for virtual assets. MaiCapital is licensed by the Securities and Futures Commission of Hong Kong (“SFC”) to manage funds that may comprise up to 100% virtual assets which directly complements Solomon’s licensing for the trading of virtual assets.

Mr. Thomas Tam, Chief Executive Officer of Solowin, said: “This strategic collaboration comes at an especially opportune time for the popularization of virtual assets in Hong Kong. Following SFC approval of the first spot virtual asset ETFs, Solomon was selected as one of the three participating dealers for China AMC (HK) & Harvest Global’s ETFs and strengthened its partnership with OSL Digital Securities to facilitate the ETF’s in-kind subscription and redemption processes. MaiCapital is a pioneer in applying traditional institutional investment practices to the virtual asset sector which aligns with our vision. Together, we will strengthen asset management services for virtual assets to provide investors with expanded options to diversify their virtual asset allocation.”

About MaiCapital Limited

MaiCapital is a leading virtual assets investment manager in Hong Kong and is a pioneer in applying institutional investment practices to the innovative cryptocurrency space. The firm aims to offer crypto-inclined investors with legitimate and compliant products that provide positive returns with maximum protection.

MaiCapital has received SFC’s approval to manage funds that may comprise up to 100% virtual assets. The firm is subject to the SFC's "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets".

In early 2019, the firm launched its first crypto-themed product, the Blockchain Opportunity Fund. The multi-strategy investment approach of this Fund has garnered global recognition, with the London-based investment data company Preqin ranking its 2021 return among the Top 3 hedge funds across all of Asia.

About Solowin Holdings

Based in Hong Kong, SOLOWIN HOLDINGS is a versatile securities brokerage company strategically focused on high-net-worth investors worldwide. It offers a wide spectrum of products and services, spanning from traditional assets to virtual assets through its advanced and secure one-stop electronic platform, Solomon Win.

Experiencing robust growth since 2021, SOLOWIN HOLDINGS distinguishes itself through its subsidiary, Solomon JFZ (Asia) Holdings Limited (“Solomon”), licensed by the Hong Kong Securities and Futures Commission. Solomon JFZ empowers the company to deliver unparalleled one-stop financial solutions to both individual investors and corporate clients. The diversified offerings include Securities Brokerage, Investment Banking, Asset Management, Virtual Assets, and cutting-edge FinTech Services. For more information, visit the company’s website at http://ir.solomonwin.com.hk.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For investor and media inquiries please contact:

SOLOWIN HOLDINGS 
Investor Relations Department
Email: ir@solomonwin.com.hk


FAQ

What is the new strategic partnership between Solowin and MaiCapital?

Solowin has partnered with MaiCapital to expand virtual asset allocation opportunities by acquiring a 2.47% equity stake in BA Fintech Lab, the parent company of MaiCapital.

What does the strategic partnership between Solowin and MaiCapital entail?

The partnership involves combining resources and licenses to capitalize on the growing investor demand for virtual assets, leveraging MaiCapital's expertise and Solowin's trading license.

What is the significance of Solowin's 2.47% equity stake in BA Fintech Lab?

The acquisition signifies a strategic investment aimed at enhancing virtual asset allocation opportunities through the partnership with MaiCapital.

How does MaiCapital complement Solowin's services?

MaiCapital's license to manage 100% virtual asset funds complements Solowin's licensing for trading virtual assets, creating synergies in asset management services.

What role does Solowin play in Hong Kong's virtual asset market?

Solowin was selected as a participating dealer for the first spot virtual asset ETFs approved by the SFC, strengthening its market position and facilitating ETF processes.

Solowin Holdings

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