Hong Kong-based crypto exchange OSL Digital Securities (OSL) is set to distribute Ethereum-based security tokens in private security token offerings (STO) to professional investors.
An STO enables an issuer to sell tokenized digital securities known as “security tokens” which are then sold on security token exchanges.
Unlike NFTs which represent ownership of digital (or physical) assets, securities are tradable financial assets which are used to raise funds in both public and private sectors.
OSL’s tokens will represent $10,000 coupon-rate USD bonds linked to Bitcoin’s overall performance.
The STO will act as a proof-of-concept for regulated digital asset management to enable Hong Kong’s crypto exchanges to issue and distribute tokenized securities to financial companies and organizations.