Article Author: 0x9999in1

Source: ME

The Web3 strategies and layouts of listed companies have become a hot topic of increasing public interest. Against this backdrop, ME officially launches the “Executive Interviews on Crypto Concept Stocks” series. We will engage in conversations with those pioneering business leaders in the wave of digital transformation, exploring their strategic layouts, business innovations, and financial innovations from the decision-makers' first perspective, providing forward-looking insights for industry participants.

This issue's interview guest is the newly appointed CEO of Firecoin Technology Holdings (01611.HK), Weng Xiaoqi, also known as "Seventh Master." This seasoned professional in the crypto space shares his career transition from Huobi to HashKey, and then to Firecoin Technology, along with his strategic vision for the future development of Firecoin Technology.

From Huobi to HashKey: The Starting Point of Compliance Exploration

In 2018, Weng Xiaoqi's collaboration with Huobi founder Li Lin made him a key figure at Huobi Global. He recalled, "Since 2018, I worked closely with Li Lin, serving as the CEO of Huobi Global until 2021." He proudly stated, "Huobi is a learning organization that has nurtured many talents. Many exchanges have drawn talent from us, so we are regarded as the Whampoa Military Academy of the industry."

In 2022, after Li Lin sold Huobi, he recommended Weng Xiaoqi to HashKey Group founder Xiao Feng. Weng admitted that he was still skeptical about the compliance prospects in Hong Kong at that time: "I was cautious about Hong Kong's compliance environment, with many uncertainties, and the space and feasibility were yet to be verified." However, after in-depth discussions, he became resolute: "I later realized that compliance is a major trend for the future, so I decided to join HashKey, officially starting in 2023, for nearly two years until the end of 2024." At HashKey, Weng served as the Group COO and the first CEO of HashKey Exchange, "bringing in a large number of talents and establishing a complete operational system for the exchange."

When discussing the reasons for leaving HashKey, Weng clarified that it was not due to internal conflicts or gossip but rather family reasons. He clarified, "Some rumors from the outside are quite absurd. The real reason is that a family member had a sudden health issue, and I needed to take care of my family, which was the main reason." After handling family matters, Li Lin invited him to join Firecoin Technology: "This year, my family matters have been properly managed, and Li Lin found me. At that time, Firecoin was in a state of no management, and he hoped I would join and increase investment in Firecoin's business, so I joined through a private placement plan."

Return: A New Chapter for Firecoin

As one of the earliest blockchain concept stocks globally, Firecoin Technology has been relatively low-profile in recent years due to sales and other reasons. Weng Xiaoqi's joining marks the start of a new strategy. He shared, "I joined Firecoin at Xiao Feng's suggestion. He predicted that the linkage between traditional finance and digital assets would drive industry activity before the new market cycle. There are few blockchain stock targets in Hong Kong, and Firecoin is one of the pure representative companies." Before deciding to join, he sought Xiao Feng's opinion: "When discussing whether to join Firecoin, I consulted Xiao Feng, and he supported my joining." Weng emphasized that he still maintains a close cooperative relationship with HashKey: "We have maintained a very good relationship, and there is no so-called poaching; I am also a shareholder of HashKey."

Weng is also confident about collaborating with current non-executive director Du Jun: "Du Jun is a longtime friend of mine, and his investment areas are broad, covering funds, on-chain media, SaaS services, etc. His business is diverse, making it difficult for him to focus on managing Firecoin. Now, as the full-time CEO, I take over management, and he feels at ease." He added, "We have been closely discussing Firecoin's strategic direction recently, and Du Jun is one of the main participants in strategy formulation."

Weng views Firecoin's return as a continuation of past ties, expressing, "I was recommended by Li Lin to join HashKey and returned to Firecoin at Xiao Feng's suggestion. I feel honored to work at the two most influential platforms in the Chinese crypto circle, one pioneering the exchange model and the other leading the compliance trend. I believe this return to Firecoin, alongside Li Lin, Du Jun, and others, will allow us to once again lead the direction of the tide."

New Beginnings: Innovating Private Banking Services and Seizing the DAT Layout

Firecoin Technology's strategy returns to "first principles," focusing on market pain points rather than replicating HashKey's license model. Weng Xiaoqi pointed out, "There are speculations that we will replicate HashKey's license business, but we choose to start from the actual market demand. The license market in Hong Kong has become saturated, with over a dozen licenses, and leading platforms have not seen significant breakthroughs, making it unwise to enter a red ocean in the short term."

Regarding the market driven by stablecoins and RWA, Weng observed the pain points of high-net-worth individuals and institutions: "This round of market activity has attracted many clients' attention to stablecoins and RWA, but they face numerous issues: how to purchase digital assets, how to open accounts, whether asset storage is safe, whether it can appreciate, and how to pass it on to the next generation." Existing license platforms are relatively "low-touch": "Currently, the license business is primarily retail-oriented, making it difficult to provide dedicated customer service for each client, only offering self-service through an app." He cited an example: "We have observed that many users encounter issues with deposits, withdrawals, transfers, and trading when using license exchanges, and even market orders and limit orders are difficult to understand, especially for high-net-worth clients. This segment of traditional stock market high-net-worth individuals, family offices, and institutions wants to enter the market but is hindered by technical barriers."

Firecoin's solution is to create a "private banking-level digital asset steward": "We rely on the Trust License No. 149 to provide full-chain private banking-level services for high-net-worth individuals. When clients open accounts, a dedicated private steward assists in organizing materials, and if everything is complete, the account can be opened within seven days." In trading, "clients do not have to face a cold app for self-ordering; we provide dedicated service groups for each high-net-worth client. When a client requests to purchase $1 million worth of Bitcoin, we provide market feedback and quickly complete the transaction through smart routing." In terms of custody, "we offer multiple options: custody in our trust fund or selecting trusted exchanges like Coinbase or HashKey; if clients prefer to manage themselves, we provide MPC wallets." Additionally, we offer investment and inheritance solutions: "We provide a fund supermarket and investment opportunities linking traditional finance with digital assets, pioneering the establishment of family trusts with Bitcoin, for example, a trust of 100 Bitcoins can be allocated through a will, with 50 going to the son and 50 to the daughter."

Institutional clients are also a focus: "Many banks are forced to enter the market due to the popularity of stablecoins; otherwise, deposits will flow to on-chain. Institutions also face issues with insufficient trading and management capabilities. We will systematically serve financial institutions, helping to build trading, custody, security, and asset management capabilities." He summarized, "We focus on high-net-worth individuals and institutions, skipping retail clients because the cost of serving retail clients under the license is too high."

Moreover, Firecoin Technology is also looking globally, finely targeting the global DAT (Digital Asset Treasury) trend. Weng Xiaoqi revealed, "Currently, global market pricing is primarily based in the U.S., with the largest net inflow of institutional funds. This model has persisted for a long time in the Bitcoin and Ethereum sectors, and the Ethereum market has not yet saturated." He announced, "We will unveil a special plan with a scale of about $500 million, strategically laying out U.S. stock DAT, and have already discussed cooperation with several leading DAT institutions." This move not only meets the primary market allocation needs of private banking clients but also aligns with investors' expectations, following the trend of market development.

Conclusion

From the founding of Huobi to the compliance exploration of HashKey, and then to the strategic rebirth of Firecoin Technology, Weng Xiaoqi's career journey can be seen as a connection through the golden age of the crypto circle. With the support of Li Lin, Xiao Feng, and Du Jun, he leads Firecoin Technology with an open mindset to fill the market gap for high-net-worth and institutional private banking-level services in Hong Kong while also laying out the U.S. DAT trend. The new appearance of Firecoin Technology in Hong Kong's financial landscape is indeed remarkable.