One of the largest cryptocurrency exchanges in the world, OSL Digital Securities Limited (OSL), said on Tuesday that it has become the first Type 1 SFC-licensed digital asset broker to provide sales of security tokens to professional investors in Hong Kong via private security token offers (STOs). According to the official announcement, OSL is the first licensed brokerage business in Hong Kong for digital assets to let international institutions buy new asset-backed digital tokens classified as securities. Animoca Brands, China Fortune Financial Group Limited, Monmonkey Group Asset Management Limited, and Head & Shoulders Financial Group are just a few of the institutional clients it has thus far. Each digital token, according to OSL, represents a USD10,000 unit of a USD bond with a Bitcoin-linked coupon rate. The startup uses the Ethereum blockchain to create the tokens with a three-month tenor and a bonus coupon tied to Bitcoin performance. In this approach, investors may purchase digital assets with U.S. dollars, Bitcoin, and Ether, in addition to indirectly owning digital assets linked to conventional financial assets. OSL CEO Wayne Trench discussed the situation saying, “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 of a security token issued on a public bloc...
