J.P. Morgan raises HashKey rating on RWA outlook

J.P. Morgan lifts HashKey rating as tokenisation and Hong Kong shift support outlook

J.P. Morgan has upgraded HashKey from Neutral to Overweight, signalling stronger confidence in the Hong Kong-licensed digital asset firm.

The bank kept its target price for HashKey unchanged at HK$5.00 after meetings with management at the J.P. Morgan China Summit.

The upgrade points to growing belief that regulated onshore crypto platforms in Hong Kong are gaining ground against offshore exchanges.

J.P. Morgan said HashKey’s trading volumes have grown year on year despite weaker activity across the wider virtual asset market.

That growth suggests HashKey has been taking market share while broader crypto trading conditions remain soft.

The bank also expects HashKey’s gross margin to improve by about 10 percentage points in fiscal 2026 as trading-related costs return to normal levels.

J.P. Morgan said this combination of higher volume and steadier costs could give HashKey a clearer path to better profitability.

Real-world asset tokenisation was also named as a key reason behind the more positive rating.

The bank said tokenised equities could gain momentum over the next six to 12 months, with HashKey Chain positioned as a key infrastructure layer.

HashKey is developing its blockchain network as a regulated venue for tokenised securities and other on-chain financial products.

The move addresses growing institutional demand for compliant digital asset platforms that can support tokenised capital markets.

The wider tokenisation sector has also gained traction, with real-world assets on-chain recently passing the $20billion mark.

J.P. Morgan’s own role in tokenised Treasury settlement activity has added further attention to the sector.

HashKey’s regulated status could appeal to institutions that remain cautious about using decentralised finance platforms without clear oversight.

The report also highlighted a broader shift in crypto trading from offshore exchanges to licensed onshore venues.

This shift has gained more attention after major industry failures and enforcement actions raised concerns about custody, clearing and investor protection.

HashKey is among the few fully licensed digital asset exchanges in Hong Kong, giving it a possible advantage as traders look for clearer rules.

J.P. Morgan also noted HashKey’s stablecoin licence applications and payment infrastructure plans as future growth areas.

The company plans to launch perpetual futures contracts this year and is also working on crypto options products.

These products could help HashKey reduce its reliance on spot trading and attract more professional traders.

However, J.P. Morgan’s unchanged HK$5.00 target price suggests it remains cautious about how quickly these plans can affect valuation.

Risks remain, including weak market volumes, high infrastructure spending and delays in tokenised equity adoption.

Tokenised securities still face questions over liquidity, legal treatment and custody before they can reach wider use.

The onshore trading shift could also weaken if regulations change or if stronger licensed rivals enter the market.

For now, J.P. Morgan’s upgrade reflects a measured bet that HashKey can turn its regulated position into long-term growth.