The post Taiwan’s Financial Supervisory Commission issues first security token offering license  appeared on BitcoinEthereumNews.com.

Taiwan’s Financial Supervisory Commission has granted Cathay Securities the inaugural license for a security token offering (STO). The landmark issuance, termed “Sunshine Green Yield,” marks a new chapter for financial instruments in the region. According to a local report, This STO, set to mature in six years, offers an initial annual interest of 3.5% on a principal amount of 30 million New Taiwan Dollars. This strategic step forward for Cathay highlights the potential for digital assets to coalesce with traditional financial services. Strategic steps for sustainable investments Cathay Securities’ “Sunshine Green Yield” bonds cater to enterprise owners interested in environmental sustainability. These green electricity tokens present a dual opportunity. Besides the initial investment, subscribers may receive up to 5.8% variable interest rate payments annually. Consequently, this initiative aligns with broader environmental, social, and corporate governance goals. Trading of these bonds will commence on December 12 on Cathay’s proprietary STO exchange platform. When compared to Initial Public Offerings (IPOs) of traditional financial markets, Securities-based Virtual Currencies (STOs) use blockchain technology to recognize digital value that can be stored, exchanged, or transferred while being liquid. STOs possess several investment properties, including being funded by the investor, investing in a common cause or plan, the investor expecting to make a profit, and the profit primarily relying on the issuer’s or third-party’s efforts. The FSC’s classification of tokenized assets as securities since 2019 has paved the way for this development. Nonetheless, financial institutions must adhere to stringent regulations. They face a fundraising ceiling of $930,000 and can launch no more than two STOs annually. These offerings target enterprises and accredited investors, the latter capped at purchasing $9,300 in STOs. Cathay Securities has also collaborated with Numerix, a risk-control technology firm, and Professor Ye Zongying of National Chung Hsing University. Together, they have developed an…

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Filed under: News - @ November 10, 2023 12:08 am