JPMorgan has approved a segregated client money account for HashKey Exchange, Hong Kong's largest licensed digital asset exchange, according to reports of the bank's decision today.
The account structure isolates customer funds from HashKey's operating capital, a requirement under Hong Kong's regulatory framework for licensed digital asset exchanges. The approval strengthens the infrastructure available to platforms operating under the city's license regime, which launched in January 2023 under the Securities and Futures Commission's oversight.
HashKey Exchange holds one of six active SFC licenses for digital asset trading platforms in Hong Kong. The segregated account is distinct from settlement banking relationships; HashKey previously named DBS as its settlement bank for fiat deposits and withdrawals, a partnership announced earlier this year.
JPMorgan's approval of a client money account addresses a structural requirement for licensed exchanges managing customer deposits. Under SFC rules, platforms must maintain segregated accounts to prevent commingling of client and operational funds, a standard also enforced across regulated markets in Singapore, the European Union, and the United Kingdom.
HashKey's regulatory footing in Hong Kong positions it differently from unregulated exchanges operating globally. The SFC framework requires licensed platforms to demonstrate custody and fund management practices, with third-party banking relationships serving as a mechanism for compliance verification.
The approval marks the second major banking relationship HashKey has formalized in 2026, following the DBS settlement arrangement. JPMorgan's participation in the account structure adds a Tier 1 global bank to the operational backbone of a major Asia-Pacific licensed exchange.
HashKey's regulatory compliance infrastructure now includes both fiat settlement (DBS) and segregated client money custody (JPMorgan), the two operational pillars the SFC monitors most closely. No other Hong Kong-licensed exchange has publicly announced a segregated account with a comparably positioned global custodian bank this year.
The document to watch is whether HashKey publishes updated custody or fund management policies reflecting JPMorgan's role in the account structure.
