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 <a href="https://www.cryptoknowmics.com/glossary#security-token">security tokens</a> 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 &amp; 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 <a href="https://www.cryptoknowmics.com/news/vitalik-buterin-says-ethereum-to-be-55-complete-post-merge/" target="_blank" rel="noopener">Ethereum</a> 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 <a href="https://twitter.com/WayneTrench" target="_blank" rel="nofollow noopener">Wayne Trench</a> discussed the situation saying,
<blockquote><em>"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 blockchain. Through the STO, OSL reaffirms its position as a pioneer in the Hong Kong digital asset market. Blockchain-based digital securities represent the future of the capital markets and financial products, and this is a key step in the adoption of this innovative and efficient technology."</em></blockquote>
<h2>Tokenization Creating Investment Opportunity</h2>
Startups with limited regulatory and financial knowledge undoubtedly struggle to introduce such digital assets and run into regulatory hurdles. The Hong Kong Monetary Authority (HKMA) and the SFC jointly released a circular on January 28, 2018, allowing registered institutions and licensed businesses to offer digital asset investment services through collaborations with SFC-licensed virtual asset trading platforms for the first time.

OSL Offers Security Tokens to Institutional Bankers in Hong Kong

OSL is the first licensed brokerage business in Hong Kong to let international institutions buy new asset-backed digital tokens classified as securities.

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OSL Offers Security Tokens to Institutional Bankers in Hong Kong

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