Cathay Securities is permitted to issue $930,000 worth of tokenized green bonds every six months. Taiwan's financial watchdog, the Financial Supervisory Commission (FSC), has awarded the country's first security token offering (STO)...
According to local news reports on Nov. 9, Cathay received regulatory approval for its "Sunshine Green Yield" STO bonds with a time to maturity of six years, initial annual interest of 3.5%, and an initial principal amount of 30 million New Taiwan Dollars ($0.93 million).
To create credible STO interest rate pricing, Cathay Securities partnered with risk-control technology company Numerix and professor Ye Zongying at National Chung Hsing University to develop Taiwan's first STO evaluation model. The firm claims that the model is "95% accurate" in calculating the default probability of small and medium-sized businesses.
Founded in 2004, Cathay Securities is one of the largest financial services firms in Taiwan. The company serves millions of investors and brokerage clients.
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