Hong Kong-based crypto exchange OSL Digital Securities is set to distribute security tokens in a private security token offering (STO) with participants, including Animoca Brands.
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With the offering, OSL has become the first digital asset broker with Type 1 registration from Hong Kong-regulator Securities and Futures Commission (SFC) to conduct an STO with professional investors, according to an announcement on Tuesday.
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Along with noted non-fungible token (NFT) and metaverse investor Animoca Brands, participants included Head & Shoulders Financial Group, China Fortune Financial Group Limited, Volmart and Monmonkey Group Asset Management.
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In an STO, an issuer sells tokenized digital securities or “security tokens,” which can later be sold on security token exchanges. NFTs are digital tokens which represent the ownership of either a physical or digital asset, while securities are tradable financial instruments used to raise capital in public and private markets.
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The Ethereum-based tokens will represent $10,000 coupon-rate USD bond, which is linked to the performance of bitcoin (BTC).
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The STO is meant to act as a proof-of-concept for regulated digital asset investment, paving the way for issuance and distribution of tokenized securities among licensed financial intermediaries in Hong Kong.
Read more: Animoca Brands’ Investment Portfolio Now Worth Over $1.5B
