Crypto Exchange OSL Will Provide Professional Investors Security Tokens

OSL Digital Securities, a Hong Kong-based crypto exchange, plans to distribute security tokens through a private security token offering.

It will distribute security tokens to professional investors in Hong Kong through a private security token offering, becoming the first Type 1 SFC-licensed digital asset broker to do so.

Animoca Brands, Head & Shoulders Financial Group, China Fortune Financial Group Limited, Volmart, and Monmonkey Group Asset Management Limited are some participants in the offering.

A novel “proof-of-concept” for investment in regulated digital assets is presented by the STO. This establishes the industry standard for STOs internationally and opens up a new market for the production and sale of tokenized securities through authorized intermediaries in Hong Kong.

Every security token denotes a USD10,000 unit of a USD bond with a bitcoin-linked coupon. The bond was issued by BC Technology Group (BC Group), a division of OSL’s parent firm, and BC Group also served as the bond’s guarantor.

The tokens have a three-month tenor, a fixed and a bonus coupon tied to bitcoin performance, and were created using the Ethereum network.

OSL CEO Wayne Trench remarked: The OSL STO transaction is a viable model for security token issuance and distribution of digital tokens by regulated operators. We designed the issuance to demonstrate the immense value and ease-of-distribution for a security token issued on a public blockchain.

Investors who buy tokenized digital securities during an STO can sell them later on security token exchanges.