Hong Kong FinTech Week Day 3: Tokenized Securities and the Future of Capital Markets
By BC Technology Group Head of Capital Markets Strategy Eric Landheer
The SFC approval-in-principle for Types 1 and 7 digital asset-specific licenses for OSL paves the way for distribution, listing and trading of security tokens on the platform, and is a key differentiator for BC Technology in the Hong Kong market.
Assuming the license is issued, major traditional financial institutions will have the ability to onboard and transact with our licensed entity and invest in the digital asset ecosystem.
Users will enjoy all the protections required by traditional finance, and additional safeguards that have been tailor-made for this new asset class. SFC CEO Ashley Alder’s recent comments regarding regulation of all digital asset activities in Hong Kong reaffirm our belief that seeking regulation was the right strategy.
Digital securities and STOs will benefit traditional finance
Digital securities will create new revenue streams while democratizing access for a broader pool of investors through fractionalization of traditionally illiquid assets.
Established global institutions have already directly issued STOs, including the Austrian Government, Banco Santander, Bank of China, BBVA and Daimler. Digital securities and STOs have disruptive potential, and will create opportunities for new and existing investor pools, and financial firms.
- Democratization of investor participation and expansion of investment base – lower entry barriers in terms of amount and time frame
- A new business line complementary to traditional finance, enabling new fundraising avenues, fintech and financial services revenue streams
- Greater liquidity, flexibility, fairness and efficiency that enables 24/7 transactions based on smart contracts and integration of currently illiquid commodities and assets in the digital asset ecosystem
- Immutable records, traceable assets – data transparency on blockchain ledgers and verified information for transactions
- A paradigm shift that requires more liquidity providers and reliable data streams
OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.
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