OSL becomes the first Type 1 SFC-licensed crypto broker to distribute security tokens in Hong kong

Hong Kong-based licensed crypto platform OSL Digital Securities Limited (OSL) recently announced that it has become “the first Type 1 SFC-licensed digital asset broker to distribute security tokens to professional investors in Hong Kong via a private security token offering (STO).”

According to the official announcement by the company, STO saw the participation of some of the big names, including Animoca Brands, China Fortune Financial Group Limited, Head & Shoulders Financial Group, Volmart, and Monmonkey Group Asset Management Limited.

Today OSL became the first Type 1 licensed DA broker in HK to sell security tokens to investors in a private STO – participants included @animocabrands, Head & Shoulders Financial Group and others
Read more: https://t.co/NFu5ecWJyD#STOs #regulation #crypto #digitalassets pic.twitter.com/fepS8PpRHg

— OSL (@osldotcom) July 26, 2022

OSL believes that the latest STO demonstrates a “proof-of-concept” for investing in regulated cryptocurrencies. This, according to the company, brings opportunities for “a new market for issuance and distribution of tokenized securities through licensed intermediaries in Hong Kong.”

OSL receives massive support

OSL served as the bookrunner, placing agent, fiscal and payment agency, transfer agent, registrant, calculation agent, tokenization technology partner, and trading venue while providing end-to-end services for the STO transaction.

According to the announcement, each token represents 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. 

OSL CEO Wayne Trench believes that STO transaction by the company “is a viable model for security token issuance and distribution of digital tokens by regulated operators.” He explained that the token architecture is completely compatible with securities regulations and AML requirements and employs smart contract technology to enable transparent transfers of security tokens on the public blockchain between hosted and private wallets. 

Yat Siu, Animoca Brands’ chairman and co-founder, commented called OSL “an innovative global leader in the space” and stated that Web3 and tokenized securities are “revolutionizing and modernizing traditional financial services.”

Hong kong is experiencing massive crypto adoption in the past few months. As TheCoinRise reported, a few weeks back, FCA hired Hong Kong’s Securities and Futures Commission former CEO Ashley Adler as its new chair.

Notably, in March, Huobi Tech filed to list its crypto ETF product for Hong kong’s retail investors.

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