Article author: 0x9999in1

Article source: ME

The Web3 strategies and deployments of listed companies have become a hot topic of increasing public interest. Against this backdrop, ME has officially launched its "Crypto Stock Executive Interviews" series . We will speak with leaders of companies that are pioneering digital transformation. Through the perspective of decision-makers, we will delve into their strategic deployments, business innovations, and financial innovations, providing forward-looking insights for industry participants.

This episode features Weng Xiaoqi, the newly appointed CEO of Newfire Technology Holdings (01611.HK), also known as "Seventh Master." This crypto veteran, drawing on his extensive industry experience and keen market insights, shares his career journey from Huobi to HashKey and finally to Newfire Technology, as well as his strategic vision for the company's future development.

From Huobi to HashKey: The Starting Point of Compliance Exploration

In 2018, Weng Xiaoqi's collaboration with Huobi founder Li Lin established him as a key figure in Huobi Global. He recalled, "From 2018, I worked closely with Li Lin as CEO of Huobi Global, a position he held until 2021." He also proudly stated, "Huobi is a learning organization that has nurtured numerous talented individuals. Many exchanges have recruited talent from us, and we are considered the industry's Huangpu Military Academy."

In 2022, after Li Lin sold Huobi, he recommended Weng Xiaoqi to Xiao Feng, founder of HashKey Group. Weng Xiaoqi admitted that at the time, he still had doubts about Hong Kong's compliance landscape: "At the time, I was taking a wait-and-see approach to the compliance environment in Hong Kong. There were many uncertainties, and the scope and feasibility were still to be verified." However, after in-depth discussions, his conviction was strengthened: "Later, I realized that compliance was a major trend in the future, so I made up my mind to join HashKey. I officially joined in 2023 and stayed there for nearly two years until the end of 2024." At HashKey, Weng Xiaoqi served as the Group's Chief Operating Officer 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 his reasons for leaving HashKey, Weng Xiaoqi clarified that it wasn't rumors of internal strife, but rather family reasons. He clarified, "Some of these rumors are quite outrageous. The real reason was a sudden health issue with a family member, and I needed to take care of them. That was the main reason." After his family matters were resolved, Li Lin invited him to join New Fire Technology. "This year, after my family matters were properly handled, Li Lin approached me. New Fire was unmanaged at the time, and he wanted me to join and increase investment in its business. So, I joined through the private placement."

Return: New Fire Renews the Former Relationship

As one of the world's earliest blockchain-focused companies, Xinhuo Technology has maintained a relatively low profile in recent years due to various factors, including its sale. Weng Xiaoqi's joining the company marks the beginning of a new strategic initiative. He shared, "I joined Xinhuo at the suggestion of Xiao Feng. He predicted before the new market cycle that the integration of traditional finance and digital assets would drive industry activity. There are relatively few blockchain stocks in Hong Kong, and Xinhuo is a pure representative." Before deciding to join, he sought Xiao Feng's opinion: "When discussing whether to join Xinhuo, I consulted Xiao Feng, and he supported me." Weng Xiaoqi emphasized his continued close partnership with Hashkey: "We maintain a very good relationship. There has been no alleged poaching. I am also a HashKey shareholder."

Weng Xiaoqi is also confident in his collaboration with current non-executive director Du Jun. "Du Jun is a long-time friend. His investments span funds, on-chain media, and SaaS services. With so many areas of focus, it's difficult for him to focus solely on managing New Fire. Now, as the full-time CEO, I'm taking over management, and he feels reassured." He added, "We've recently been discussing New Fire's strategic direction closely, and Du Jun is a key participant in the strategy formulation."

Weng Xiaoqi sees his return to Xinhuo as a continuation of a past relationship, saying, "I joined HashKey at Li Lin's recommendation, and returned to Xinhuo at Xiao Feng's suggestion. I feel deeply honored to work for two of the most influential platforms in the Chinese crypto community, one pioneering exchanges, and the other leading the regulatory compliance trend. I believe that with my return to Xinhuo, working hand in hand with Li Lin, Du Jun, and others, we will once again lead the trend."

Newcomers: Innovating private banking and seizing the opportunity to develop DAT

Xinhuo Technology's strategy is based on first principles, focusing on market pain points rather than replicating HashKey's No. 7 license model. Weng Xiaoqi explained, "There's been speculation that we'd copy HashKey's No. 7 license business, but we've chosen to prioritize actual market demand. Hong Kong's No. 7 license market is already saturated, with over a dozen licenses available. Even leading platforms haven't seen significant breakthroughs, making it difficult to break out in the short term. Entering this red ocean is unwise."

Regarding the market driven by stablecoins and RWAs, Weng Xiaoqi has insight into the pain points faced by high-net-worth individuals and institutions: "This round of market has attracted many clients to stablecoins and RWAs, but they face numerous challenges: how to purchase digital assets, how to open an account, whether the assets are stored safely, whether they can increase in value, and how to pass them on to the next generation." The existing No. 7 platform has a "low touchpoint" nature: "Currently, No. 7's business is primarily focused on retail investors, making it difficult to provide dedicated customer service for each client. App self-service is the only option." He gave an example: "We've observed that many users, especially high-net-worth individuals, encounter issues with deposits, withdrawals, transfers, and trading when using No. 7 exchanges. They even struggle to understand market and limit orders. These high-net-worth individuals, family offices, and institutions in the traditional stock market want to enter the market, but are hindered by technical barriers."

Xinhuo's solution is to create a "private banking-grade digital asset steward": "Leveraging our No. 149 Trust License, we provide full-service private banking services for high-net-worth individuals. When a client opens an account, a dedicated personal steward assists in organizing the required documents, and if all necessary documents are complete, the account opening can be completed within seven days." Regarding transactions, "clients no longer have to rely on a cold, inflexible app to place orders. We provide a dedicated service group for each high-net-worth client. When a client submits a request, such as purchasing $1 million in Bitcoin, we provide market feedback and quickly complete the transaction through intelligent routing." Regarding custody, "we offer a variety of options: custody in our trust fund or on trusted exchanges like Coinbase and HashKey. If clients prefer self-management, we offer an MPC wallet." Furthermore, we offer investment and inheritance solutions: "We offer a fund supermarket and investment opportunities that integrate traditional finance with digital assets. We are the world's first to establish a family trust using Bitcoin. For example, a trust with 100 Bitcoins could be divided through a will, with 50 to a son and 50 to a daughter."

Institutional clients are also a priority. "Many banks have been forced into the stablecoin market due to the popularity of stablecoins; otherwise, deposits would flow on-chain. Institutions also face challenges with insufficient trading and management capabilities. We will systematically serve financial institutions, helping them build trading, custody, security, and asset management capabilities." He concluded, "We focus on high-net-worth individuals and institutions, omitting retail investors because the cost of serving them with a license plate is too high."

Furthermore, Xinhuo Technology is taking a global approach, meticulously targeting the DAT (Digital Asset Treasuries) boom in the global market. Weng Xiaoqi revealed, "Currently, global market pricing is primarily driven by the US, with the largest net inflow of institutional funds. This pattern has persisted for a long time in the Bitcoin and Ethereum sectors, and the Ethereum market is not yet saturated." He announced, "We will announce a dedicated program of approximately US$500 million to strategically develop US DATs, and we are already in discussions with several leading DAT institutions for collaboration." This move will not only meet the primary market allocation needs of private banking clients, but will also satisfy investor expectations and align with market trends.

Summarize

From the founding of Huobi to HashKey's regulatory compliance efforts, and finally to the strategic rebirth of New Fire Technology, Weng Xiaoqi's career journey can be described as a culmination of the crypto world's golden age. With the support of Li Lin, Xiao Feng, and Du Jun, he led New Fire Technology with an open mindset to fill the gap in Hong Kong's high-net-worth and institutional private banking services market, while also capitalizing on the US DAT boom. New Fire Technology's newfound presence in Hong Kong's financial hotbed is truly remarkable.