On November 9, the Financial Supervisory Commission (FSC), Taiwan’s financial regulatory body, granted Cathay Securities the inaugural securitized tokens offering (STO) license.
Reports confirm that Cathay has received regulatory approval for its STO bonds, dubbed “Sunshine Green Yield.” Notably,these six-year bonds start with a 3.5% annual interest rate and a principal of 30 million New Taiwan dollars ($930,000). Notably, they can be issued biannually.
Securitized Tokens “Green Initiative” Bonds by Cathay Securities and FSC Regulations
Cathay’s STO bonds, promoting environmental and social initiatives, offer business owners favorable terms for acquiring green electricity.
Additionally, subscribers can benefit from variable interest rate payments, potentially reaching up to 5.8% annually. The “Sunshine Green Yield” bonds are set to begin trading on December 12, exclusively on Cathay’s proprietary STO exchange platform.
Furthermore, the FSC has been categorizing tokenized assets as securities since 2019, providing pathway for financial entities to seek licensing.
However, there are stipulations, including a fundraising cap of $930,000 and a maximum limit of two STOs per year for issuers. Moreover, these offerings are exclusively available to enterprises and accredited investors, the latter being restricted to a maximum STO purchase of $9,300.
Cathay Securities’ Innovative STO Evaluation Model and Financial Services Impact
Cathay Securities collaborated with risk-control tech firm Numerix and Professor Ye Zongying from National Chung Hsing University. Together, they developed Taiwan’s inaugural STO evaluation model, ensuring credible interest rate pricing.
The model boasts a 95% accuracy rate in determining default probabilities for small and medium-sized businesses.
Founded in 2004, Cathay Securities is a key player in Taiwan’s financial services, serving millions of investors and brokerage clients.
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