Taiwan’s Financial Regulatory Commission has issued a license for the first secure token
Taiwan's financial regulator, the Financial Supervisory Commission (FSC), has granted the country's first security token (STO) license to Cathy Securities.
In the year On November 9, local news reports indicated that Cathay had issued STO bonds for “solar green products” with a maturity of six years, an initial annual interest rate of 3.5% and an initial principal amount of 30 million Taiwan dollars ($0.93 million).
Through token subscriptions, enterprise owners can purchase green electricity on the market for environmental, social and corporate governance initiatives and receive variable interest payments of up to 5.8% per annum. Nussin's green yield bond trading will begin on December 12 on Cathay's domestic STO exchange platform.
As of 2019, the FSC has classified tokenized assets as securities, with an open pathway for financial institutions to apply for a license. However, issuers must adhere to the $930,000 fundraising threshold and only conduct a maximum of two STOs per year. The offers are only available to enterprises and accredited investors, and in the latter case, they can only purchase a maximum of 9,300 STOs.
To create reliable STO interest rate pricing, Cathay Securities partnered with risk management technology company Numerics and Professor Ye Zhongjing at National Chung Hngjing University to develop Taiwan's first STO valuation model. The firm says the model is “95% accurate” in calculating the default probability of small and medium-sized businesses.
In the year Founded in 2004, Cathay Securities is one of the largest financial services firms in Taiwan. The company serves millions of investor and brokerage clients.
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