Core Insights - SOLOWIN HOLDINGS has received an In-Principle Approval letter for a stablecoin license from the Central Bank of Bahrain for its subsidiary AX Coin, pending final regulatory approval [1][2] Company Overview - SOLOWIN HOLDINGS (NASDAQ: AXG) is a leading financial technology firm established in 2016, focusing on bridging traditional and decentralized finance through secure and compliant financial infrastructure [2] - The company operates through its subsidiaries, including AlloyX Group and AX Coin, and offers integrated digital asset solutions for global investors and institutions [2] - The firm is backed by prominent international institutional investors and aims to manage compliant and transparent digital assets that are closely linked to the real economy [2] Strategic Goals - The company aims to launch a compliant stablecoin within the regulatory framework and expand AlloyX Group's stablecoin ecosystem across the Middle East and Africa (MEA) region and beyond [2]

Financial Performance - Revenue increased by 453% year-over-year to $5.84 million for the first half of fiscal year 2026, compared to $1.06 million for the same period last year, driven primarily by digital assets-related services [1][4] - Net loss narrowed by 26% to $4.63 million from $6.26 million in the previous year, indicating improved operational efficiency [1][12] - Loss from operations decreased to $4.64 million from $6.26 million for the same period last year [10] Strategic Initiatives - The company executed a dual strategy of organic growth and strategic acquisitions, entering the Saudi Arabian market through a partnership with CITIC and establishing an operation center in Dubai [3] - A significant milestone was achieved with the $350 million acquisition of AlloyX, enhancing the company's global network of financial services and regulatory licenses [3] User and Asset Growth - Assets under management (AUM) grew to $820 million, with institutional clients increasing by 110% year-over-year to 120 [2] - Active users reached 16,000, reflecting the success of product innovations such as the Real Yield Token (RYT) and Tokenization-as-a-service solutions [2] Revenue Breakdown - Revenue from digital assets-related services surged to $5.18 million, accounting for 88% of total revenue, up from $15,000 in the same period last year [6] - Traditional financial services revenue decreased, with securities brokerage commissions falling to $13,000 from $75,000, attributed to lower trading activity in the U.S. market [5][8] Expense Overview - Total expenses increased to $10.49 million from $7.35 million, primarily due to higher general and administrative expenses and costs associated with virtual assets services [7] - Employee benefits expenses decreased significantly by 62% to $1.67 million, largely due to the absence of share-based compensation costs incurred in the previous year [17] Cash Flow and Financial Condition - Cash and cash equivalents increased to $8.78 million from $3.84 million as of March 31, 2025 [14] - Net cash used in operating activities was $4.44 million, compared to net cash provided of $0.78 million in the same period last year [15]