Wall Street Bank Citi Flags OSL as Top Bet in Hong Kong’s Crypto Sector

Core Viewpoint - Citi initiated coverage of crypto exchange OSL with a buy/high risk rating and a target price of 21.80 Hong Kong Dollars ($2.80), representing 22 times projected 2025 price-to-sales [1] Group 1: Revenue Growth Projections - Citi projects revenue growth of 80%, 60%, and 36% for OSL in 2025, 2026, and 2027, respectively, driven by payment finance (PayFi) expansion and a broader regulated market footprint [2] Group 2: Regulatory Strategy and Market Position - OSL has a regulatory-first strategy with over 50 licenses across 10 jurisdictions and plans for further expansion in Europe, the Middle East, and emerging markets [2] - OSL holds a dominant position in Hong Kong's OTC crypto market, controlling over 60% market share, with strengths in liquidity, pricing, and client retention [3] Group 3: Product Development and Innovations - OSL is advancing into stablecoin infrastructure with upcoming launches such as OSL BizPay for lower-cost cross-border payments, StableX for stablecoin issuance, and Tokenworks for tokenization [3] Group 4: Market Risks and Compliance - While Citi noted risks from volatility, regulation, and competition, it emphasized OSL's compliance-first approach and early lead as distinguishing factors in Hong Kong's growing digital-asset sector [4]