Cathay Securities Secures Taiwan's First STO License; Launches "Sunshine Green Yield" Bonds
Summary:
Cathay Securities has gained Taiwan's first security token offering (STO) license from the Financial Supervisory Commission (FSC), paving the way for its "Sunshine Green Yield" STO bonds. The bonds offer an initial annual interest of 3.5% with token subscriptions enabling purchasers to buy green electricity for environmental projects. The STO will debut for trading on December 12 on Cathay's exchange platform. Financial organizations in Taiwan can apply for licensing, but there are restrictions in the number and value of STOs they can issue. The news follows the recent submission of a cryptocurrency bill to Taiwan's parliament.
Cathay Securities has been granted the first security token offering (STO) license by Taiwan's Financial Supervisory Commission (FSC), according to local news on November 9. The granted approval gives Cathay the ability to offer its "Sunshine Green Yield" STO bonds which mature in six years and have an initial annual interest of 3.5%. The offering's principal amount begins at 30 million New Taiwan Dollars, equivalent to approximately $0.93 million. These token subscriptions will allow business proprietors to buy green electricity for environmental causes and corporate social responsibility projects under advantageous terms and get variable interest rate payments of up to 5.8% annually. Cathay's STO exchange platform will facilitate the debut trading of these bonds on December 12. Since 2019, the FSC has been regarding tokenized assets as securities, and financial organizations can seek licensing. However, an annual cap of two STOs and a $930,000 fundraising limit are in place. Additionally, the offerings can only be purchased by businesses and accredited investors, the latter of which have a purchasing limit of $9,300 in STOs. To ensure trustworthy STO interest rate pricing, Cathay Securities collaborated with Numerix, a risk-control technology firm, and professor Ye Zongying at National Chung Hsing University to create the first STO evaluation model in Taiwan. Cathay Securities, which was established in 2004, boasts that this model is 95% precise in gauging the likelihood of small to mid-sized businesses defaulting. As one of the biggest financial service providers in Taiwan, Cathay serves an extensive clientele of investors and brokerage customers. In related news, a cryptocurrency bill was recently presented to Taiwan's parliament.
Published At
11/9/2023 6:41:48 PM
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