Core Viewpoint - Morgan Stanley has applied for a license to establish a "new national trust bank" to provide custody services for digital assets [1] Group 1: Company Initiatives - The application was submitted to the Office of the Comptroller of the Currency (OCC) on February 18 [1] - The new entity will also facilitate digital asset trading and staking services for its investment clients [1] - The headquarters will be located in Purchase, New York, but the services will cover the entire United States [1]

Group 1 - Laser Digital, a subsidiary of Japan's Nomura Group, has applied for a national trust bank charter from the U.S. Treasury Department [1] - The proposed Laser Digital National Trust Bank will focus on digital assets, offering custody and spot trading services [2] - The application comes as the U.S. Treasury Department adopts a more permissive approach to bank charter applications from crypto firms [3] Group 2 - The U.S. is viewed as the most important financial market globally, with firms needing to operate under increased scrutiny and permanence [3] - Other crypto firms, including Circle, Ripple, BitGo, and Paxos, have recently received national trust banking charters from the OCC [3] - The attractiveness of bank charters has increased following the signing of the GENIUS Act, which focuses on stablecoins [4]

Core Viewpoint - Circle Internet Group Inc. is seeking to establish a national trust bank in the U.S. to manage its own reserves, which would make it the second cryptocurrency company to obtain a federal banking license after Anchorage Digital Bank in 2021 [1] Group 1 - The new bank will be named First National Digital Currency Bank, N.A. and will provide digital asset custody services to institutional clients while being subject to federal regulation [1] - Obtaining a federal banking license will allow Circle to act as a custodian for its own reserves, a goal the company has been considering since at least 2022 [1]

Investment Rating - The report assigns an "Outperform" rating for OSL Group (00863.HK) for the first time [1][4][32] Core Views - The company achieved its first positive net profit in 2024, driven by rapid growth in trading volume and SaaS services, with total revenue reaching HKD 375 million, a year-on-year increase of 78.59% [3][25] - OSL Group is the only listed licensed compliant virtual asset exchange in Asia, providing brokerage services, digital asset custody, and electronic trading platforms [3][7] - The global digital asset trading volume is expected to grow significantly, with OSL's market business revenue projected to reach HKD 283 million in 2024, a 73.3% increase year-on-year [3][25] Summary by Sections Company Overview - OSL Group is the only listed licensed compliant virtual asset exchange in Asia, with a custody asset scale of approximately HKD 5 billion, growing over five times year-on-year [3][7] - The company has successfully obtained multiple licenses, including the first AMLO license in Hong Kong and a digital currency exchange license in Australia [4][11] Financial Performance - In 2024, OSL Group achieved a net profit of HKD 56 million, marking a turnaround from previous losses [25][34] - Revenue is expected to continue growing, with projections of HKD 648 million in 2025 and HKD 1.095 billion in 2026 [25][30] Market Trends - The global digital asset trading volume is projected to reach USD 1,085,710 million in 2024, a year-on-year increase of 43% [3] - The number of individuals holding digital assets globally is expected to grow by 33% year-on-year, with Asia accounting for 327 million holders, a 22% increase [3] Business Expansion - OSL Group is accelerating its global expansion through acquisitions, including the purchase of CoinBest in Japan and plans to acquire a 90% stake in Evergreen Crest Holdings in Indonesia [4][12] - The company aims to enhance its presence in the digital asset market by launching Asia's first digital asset spot ETFs in collaboration with major funds [4][11] Valuation and Investment Outlook - The report anticipates that OSL Group will benefit from the growth of the Web3 industry and its unique position as a licensed trading platform, projecting significant revenue growth in the coming years [5][30] - The estimated price-to-sales ratios for 2025 and 2026 are 12x and 7x, respectively, indicating a favorable valuation compared to peers like Coinbase and Hong Kong Exchanges [30][31]