HONG KONG - Solowin Holdings (NASDAQ: SWIN), a prominent financial services firm currently valued at $39 million, has announced a strategic partnership with Horizon Trading Solutions, a leader in electronic trading solutions. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.12, though it faces profitability challenges with negative earnings in the last twelve months. This alliance aims to integrate Horizon's algorithmic technology into Solowin's trading systems for equities and virtual asset ETFs.
Horizon will provide its Managed & Hosted Services model, offering 24/5 support and advanced colocation infrastructure to facilitate rapid execution on the Hong Kong Stock Exchange. The partnership will enable high-frequency institutional trading firms to utilize Horizon's customized position management and short selling modules, enhancing trading efficiency through FIX protocols.
Hong Kong stands out as the first market to support in-kind subscription and redemption for spot virtual asset ETFs. Solowin's subsidiary, Solomon JFZ, is a regulated virtual asset service provider and a key dealer for ETFs managed by China Asset Management and Harvest Global Investments. Solomon JFZ has become the largest holder of client assets in various spot virtual asset ETFs in Hong Kong.
Thomas Tam, CEO of SOLOWIN, remarked on the partnership's potential to improve trading execution and adaptability for clients, especially with the addition of institutional trading clients. Emmanuel Faure, Head of APAC & MENA at Horizon, expressed enthusiasm for bringing advanced trading solutions to Asia's virtual asset markets, underscoring Horizon's dedication to innovation and high-performance technology.
Solowin Holdings offers a range of services spanning traditional and virtual assets, including investment banking, wealth management, and Web3 solutions. Despite maintaining a gross profit margin of nearly 100%, the company faces challenges with a return on equity of -74%. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and expert analysis that can help evaluate investment opportunities in companies like Solowin. Horizon Trading Solutions, with over two decades of experience, provides electronic trading technology and connectivity to capital market participants.
This partnership is based on a press release statement and involves forward-looking statements subject to risks and uncertainties. It reflects the company's expectations for future events that may impact its financial condition and business strategy. The information provided is for informational purposes only and does not constitute an endorsement of the companies or their products.
In other recent news, Hong Kong-based Solowin Holdings has unveiled a strategic partnership with Zodia Custody, a digital asset custodian backed by Standard Chartered (OTC:SCBFF). This alliance aims to strengthen Hong Kong's digital asset ecosystem by offering secure and compliant custody services for Solowin's clientele. The partnership will enable Zodia Custody to become one of the custodians for Solowin's clients, offering enhanced security and bank-grade compliance.
The two companies plan to further leverage their resources and regulatory licensing to meet the growing demand for digital asset investments in the region, subject to necessary regulatory approvals. Solowin's Web3 Partner, Marco Lim, emphasized that this collaboration would enhance their service offerings and meet client needs with a fully segregated wallet solution.
Zodia Custody's Chief Revenue Officer, Richard Clark, echoed similar sentiments, highlighting the shared commitment to innovation and strict regulatory compliance between the two firms. The partnership's impact on Solowin Holdings' financial condition and operations are based on current projections and are subject to change. Investors are advised to review the company's filings with the SEC for further details on risk factors.
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