Taiwan's First Security Token Offering Platform Launched by Cathay Securities

Cathay Securities Launches Taiwan’s First Security Token Offering Business

Cathay Securities has made history in Taiwan’s financial sector by becoming the first brokerage firm to receive regulatory approval from the Financial Supervisory Commission to launch a Security Token Offering (STO) business. This milestone signifies a significant shift in traditional finance and investment mechanisms on the island.

The inaugural STO by Cathay Securities will support the parent company of Green Point Energy Creation, known for pioneering renewable energy in Taiwan as “Sunshine Volt Family.” The offering, named “Sunshine Green Benefit Debt STO,” is a six-year debt STO with a 3.5% annual interest rate and a fundraising target of 30 million NT.

To attract institutional investors, Cathay Securities is offering a preferential deal that allows participants to purchase green electricity at competitive rates, potentially increasing the annual yield to 5.8%. The STO subscription will be available until Dec. 8, with official issuance scheduled for Dec. 12.

Innovating Taiwan’s Digital Asset Space

In collaboration with Cathay Financial Holdings’ Fintech Development Center blockchain team, Cathay Securities has developed a comprehensive STO trading platform covering issuance, negotiation, reporting, settlement, internal control, and risk management. This initiative provides businesses with an alternative fundraising channel beyond traditional stock exchange listings.

With over a million clients already attracted to its user-friendly digital investment platform, Cathay Securities aims to enhance the investment experience for investors while opening up new fundraising avenues for companies through its STO services.

Hot Take: A New Era for Investment in Taiwan

Taiwan’s financial sector marks a significant step forward with Cathay Securities’ approval to launch an STO business. This move not only provides investors with new opportunities but also offers businesses an alternative channel for raising funds. With the introduction of innovative digital asset mechanisms, Taiwan’s financial landscape is set to experience transformative changes in the coming years.