Signum Digital announced on Thursday it had teamed up with the Hong Kong Securities and Futures Commission (SFC) after the latter granted it an approval-in-principle to launch its security token offering (STO).
The tokens will offer digital assets via blockchain technologies based on tangible assets. These can include artworks, real estate, private equities, and commodities.
The company, who partnered with Coinstreet and Somerley, said that doing so could also lower risks for cryptocurrencies, namely amid major market volatility.
Samsun Lee, Chief Executive of Signum Digital, said in a statement: “In today’s financial market, SMEs face many challenges in traditional fundraising channels, and professional investors also have limited options for high quality alternative investment opportunities.”
He added that Signum Digital hoped to “fill such a gap” with its CS-Pro security token offering and subscription platform.
Somerley chairman Martin Sabine added that his company believed there was “considerable pent-up demand” for professional investors to “deploy a proportion of their portfolio into digital assets.”
He continued: “The events of 2022 may have shaken their confidence in parts of the crypto world but not their belief that digital assets will play a pivotal role in the future of finance.”
His company’s new offering with Signum Digital would become a “medium risk way of participating in these future opportunities.”
Hong Kong Opens Doors to Crypto
The news comes as Hong Kong explores regulations for cryptocurrency and other digital assets, namely after the SFC published its virtual asset trading rules in February.
The Government agency is seeking expert advice on the subject to outline its cryptocurrency regulatory framework. This has attracted numerous firms to invest in Hong Kong’s growing cryptocurrency hub.
The SFC announced at the time: “Operators of virtual asset trading platforms which plan to apply for a licence, including pre-existing platforms […], should begin to review and revise their systems and controls to prepare for the new regime.
It also warned that companies failing to apply for licences “should start preparing for an orderly closure” of their operations in the finance region.
