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.

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.

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.

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.

The Ethereum-based tokens will represent $10,000 coupon-rate USD bond, which is linked to the performance of bitcoin (BTC).

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.


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