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 Cathay Securities is permitted to issue $930,000 worth of tokenized green bonds every six months.
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<div class="cointelegraph">
 <p>Taiwan's financial watchdog, the Financial Supervisory Commission (FSC), has awarded the country's first security <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a> offering (STO) <a rel="noopener noreferrer nofollow" title="license" href="https://thebittimes.com/tag/license.html">license</a> to Cathay Securities.</p>
 <p>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).</p>
 <p>Through the <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a> subscriptions, enterprise owners can purchase green electricity on the market for environmental, social, and corporate governance initiatives under favorable conditions and receive variable interest rate payments of up to 5.8% per year. Trading for the Subshine Green Yield bonds will debut on Dec. 12 on Cathay's in-house STO exchange platform.</p>
 <p>Since 2019, the FSC has classified <a rel="noopener noreferrer nofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a>ized assets as securities, with an open pathway for financial institutions to apply for licensing. However, issuers must comply with a $930,000 fundraising limit and only conduct a maximum of two STOs per year. The offerings are also only available to enterprises and accredited investors, and in the case of the latter, they can only purchase a maximum of $9,300 STOs.</p>
 <p>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.</p>
 <p>Founded in 2004, Cathay Securities is one of the largest financial services firms in Taiwan. The company serves millions of investors and brokerage clients.</p>
 <p><strong>Related:&nbsp;Taiwan introduces crypto bill to parliament</strong></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/financial-supervisory-commission-of-taiwan-awards-first-securitized-token-license-tbt69733.html">https://thebittimes.com/financial-supervisory-commission-of-taiwan-awards-first-securitized-token-license-tbt69733.html</a></p>

Financial Supervisory Commission of Taiwan awards first securitized token license

TheBitTimes

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