Sealand Securities released a research report stating that on January 2, 2026, Asia's leading stablecoin trading and payment platform, OSL Group (00863), announced the completion of its strategic acquisition of Banxa Holdings Inc. The common ground between OSL Group and Banxa lies in their emphasis on regulatory compliance, focus on the B2B sector, and pursuit of global expansion, a shared foundation that is conducive to the subsequent absorption and integration of business operations. Considering the company's expansion of its payment product line and global growth, an "Overweight" rating is maintained. The main points from Sealand Securities are as follows.
Banxa is a payment service provider (PSP) and regulatory technology company headquartered in Australia, Europe, and North America, dedicated to building a bridge between traditional financial institutions and business processes and the digital asset sector. The company commenced operations in March 2014 and has undergone a process of shifting its business focus to the business-to-business (B2B) domain, deeply cultivating payment infrastructure and compliance system construction. Banxa has established a solid leading position in the Australian market. Since acquiring EU Internet Ventures B.V. in June 2020, Banxa has strategically pivoted towards international expansion, actively exploring emerging growth markets.
Banxa has consistently positioned itself as a "bridge" service provider between traditional fiat currency and cryptocurrency, rather than competing with traditional open cryptocurrency exchanges that primarily handle crypto-to-crypto trading. The company possesses a payment gateway infrastructure capable of supporting multi-currency (including USD, AUD, CAD, EUR, etc.) exchange transactions with digital assets and online payment services with multiple payment types. Because Banxa offers both global and local payment options, has deep operational experience in its countries of operation, and steadfastly adheres to full compliance with local laws and regulations, international anti-money laundering (AML), and customer identification (KYC) standards, major industry participants such as global exchanges and wallets are willing to become Banxa's clients and utilize its efficient and reliable two-way fiat-crypto conversion services within their own systems. Furthermore, Banxa has obtained a MiCA license, providing substantial assurance regarding its compliance.
Following the full integration of Banxa's international payment network, OSL Group will obtain over 40 trading and payment licenses covering the US, Canada, the EU, the UK, and Australia. This will strengthen OSL's global on/off-ramp capabilities, support the fiat and cryptocurrency conversion needs of clients in more regions, and align with the company's business expansion strategy in areas like Europe and North America.
After this strategic acquisition, Banxa becomes an indirect wholly-owned subsidiary of OSL Group. Its B2B payment solutions complement OSL's digital asset trading and stablecoin businesses, enhancing on/off-ramp capabilities to create a one-stop service encompassing "trading + payment + on/off-ramp," thereby increasing customer stickiness. Additionally, it is believed that the economies of scale resulting from the merger are expected to dilute compliance costs, R&D costs, and operational costs.
As a leading global on/off-ramp payment service provider, Banxa reported revenue of HKD 53.93 million for the first half of 2025. Given that OSL Group's revenue for the first half of 2025 was HKD 195 million, the acquisition of Banxa is expected to significantly boost OSL's payment business revenue. Furthermore, according to estimates, Banxa's net take rate for the first three quarters of 2025 remained at a decent level, reaching 2.40%, 2.76%, and 2.71% in Q1, Q2, and Q3 2025, respectively.
The bank forecasts revenue for 2025-2027 to be HKD 514 million, HKD 873 million, and HKD 1.172 billion, representing year-on-year growth rates of 37.12%, 69.91%, and 34.29%, respectively. Net profit attributable to shareholders is projected to be -HKD 75.74 million, -HKD 2.56 million, and HKD 194 million. The P/S ratios are estimated at 21.81x, 12.83x, and 9.56x, while the P/B ratios are estimated at 8.30x, 7.90x, and 6.43x.
Risk warnings include trading volume falling short of expectations, slower-than-expected progress in mergers & acquisitions and license applications, slower-than-expected customer acquisition, the emergence of adverse regulatory policies, and geopolitical risks.
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