Citi Initiates Coverage of OSL with Buy Rating, Highlights Growth in Hong Kong’s Crypto Sector

Wall Street giant Citi has initiated coverage of Hong Kong-based crypto exchange OSL with a buy rating and a high-risk designation, setting a target price of HK$21.80. The bank projects significant revenue growth for OSL, driven by institutional adoption and stablecoin-related products.

OSL's regulatory-first strategy, including over 50 licenses across 10 jurisdictions, positions it as a leader in Hong Kong's digital asset sector. The exchange dominates the local OTC market with a 60% share, leveraging liquidity and pricing advantages.

Upcoming product launches like OSL BizPay for cross-border payments and StableX for stablecoin issuance underscore the firm's expansion into payment infrastructure. While Citi notes risks from market volatility and competition, OSL's compliance focus and early-mover advantage make it a standout player.