Crypto Exchange OSL Sold Security Tokens to Professional Investors

The Ethereum-developed tokens represented $10,000 worth of a coupon-rate USD bond, which is linked to the performance of bitcoin.

AccessTimeIconJul 26, 2022 at 11:18 a.m. UTC
Updated May 11, 2023 at 6:51 p.m. UTC
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Hong Kong-based crypto exchange OSL Digital Securities has distributed 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 Ltd., 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 that represent the ownership of either a physical or digital asset.
  • The Ethereum-developed 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.

UPDATE (July 26, 13:02 UTC): Updates tense in headline and lead.

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Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


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