OSL and Venture Smart sign prime broking deal

BC Technology Group has signed an MOU with Venture Smart Asia Limited (VSAL) to provide brokerage and related services for VSAL’s Hong Kong-regulated digital asset funds (DigiTrackers Bitcoin and Arrano Alpha Fund).

BC is a technology and digital asset company and parent of OSL Brokerage, the only SFC-licensed digital asset brokerage and trading platform for professional investors. VSAL is a Hong Kong-licensed asset manager and investment advisory firm.

The agreement is the first collaboration between the first SFC-approved digital asset manager and BC Group.

Under the MOU, OSL will provide brokerage services, including trade execution and capital introduction services to the Arrano Alpha Fund. 

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OSL and VSAL’s blockchain arm, known as Arrano Capital, will also explore opportunities to jointly create digital asset products.

“OSL has long been a regional leader in the digital asset prime brokerage space,” said Matt Long, OSL head of distribution and prime. “As an SFC-regulated brokerage, cooperation with other regulated counterparties is a key part of our business strategy.”

In June 2020, VSAL’s Arrano Capital launched Hong Kong’s first regulated cryptocurrency fund, which provides professional investors investment exposure to Bitcoin through a traditional fund structure. VSAL is licensed by the Hong Kong Securities and Futures Commission (SFC) to manage digital asset funds.

“The signing of the MOU with OSL comes at an inflection point in the development of digital assets,” said Arrano’s chief investment officer, Avaneesh Acquilla. “As Bitcoin continues to gain momentum, institutional investors are rapidly entering the space in search of unique opportunities provided by this emerging asset class.”

VSAL is licensed to manage portfolios that invest up to 100% of assets in crypto assets. Without such additional approval, asset management firms can only hold up to 10% of crypto assets in portfolios under management.