OSL Digital Securities Restricted (OSL), a serious cryptocurrency alternate primarily based in China, introduced on Tuesday that it has turn into the primary Kind 1 SFC-licensed digital asset dealer to supply gross sales of safety tokens to skilled buyers in Hong Kong via non-public safety token choices (STOs).
In keeping with the official assertion, OSL is the primary regulated digital belongings brokerage agency in Hong Kong to facilitate gross sales of recent asset-backed digital tokens classed as securities to world establishments.
OSL has been doing that for some time. Up to now, its institutional purchasers embody the likes of Animoca Manufacturers, Head & Shoulders Monetary Group, China Fortune Monetary Group Restricted, Volmart, and Monmonkey Group Asset Administration Restricted.
OSL hopes to see continued progress if that is what the market calls for. The agency disclosed that it provides end-to-end companies for the STO transaction, performing because the bookrunner, putting agent, fiscal and paying agent, switch agent, registrar, calculation agent, tokenisation expertise companion and buying and selling venue.
In keeping with OSL, every digital token represents a USD10,000 unit of a Bitcoin-linked coupon-rate USD bond. The corporate develops the tokens utilizing the Ethereum blockchain, has a three-month tenor and carries a hard and fast and a bonus coupon linked to Bitcoin efficiency.
On this method, buyers should not solely capable of not directly personal digital belongings pegged to conventional monetary belongings, but in addition purchase the digital belongings with U.S. {dollars}, Bitcoin and Ether, the digital token of the Ethereum blockchain.
OSL CEO Wayne Trench talked concerning the growth: “The OSL STO transaction is a viable mannequin for safety token issuance and distribution of digital tokens by regulated operators. We designed the issuance to exhibit the immense worth and ease of distribution for a safety token issued on a public blockchain. By the STO, OSL reaffirms its place as a pioneer within the Hong Kong digital asset market. Blockchain-based digital securities signify the way forward for capital markets and monetary merchandise, and it is a key step within the adoption of this progressive and environment friendly expertise.”
By STOs (non-public safety token choices), OSL is taking part in a key central position in STO issuances and different digital asset transactions sooner or later. Licensed companion brokers and banks can emulate its progressive motion to supply such merchandise.
OSL Digital Securities holds a license for Kind 7 (automated buying and selling service) and Kind 1 (dealing in securities) regulated actions associated to digital belongings from the Hong Kong Securities and Futures Fee (SFC). As a licensed dealer, OSL is authorised to challenge and distribute digital securities via safety token choices to skilled buyers.
Tokenisation Offering Alternative for Investments
There have been growing talks of safety tokens within the cryptocurrency trade. These are digital tokens that signify tradeable securities and are regulated below securities legal guidelines. They’re pegged to monetary belongings akin to actual property, bonds, and shares, to keep away from the volatility witnessed in cryptocurrencies.
Startups with much less monetary expertise and regulatory know-how positively discover problem introducing such digital belongings and likewise hit roadblocks with regulators.
On twenty eighth January this yr, the Hong Kong Financial Authority (HKMA) and the SFC issued a joint round, which for the primary time, allowed registered establishments and licensed corporations to supply digital asset funding companies via a partnership with SFC-licensed digital asset buying and selling platforms.
Picture supply: Shutterstock
