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Taiwan’s Financial Supervisory Commission (FSC) has granted the country’s first Security Token Offering (STO) license to Cathay Securities. Cathay’s “Sunshine Green Yield” bonds come with a six-year maturity period with a principal amount of 30 million. They are offering a coupon rate of 3.5% initial annual interest in New Taiwan Dollars.
Cathay Securities, established in 2004, holds a prominent position in Taiwan’s financial services landscape and serves millions of investors and brokerage clients. What is the purpose of this STO? 
The STO introduced by Cathay a uniqueconcept that allows enterprise owners to procure green electricity under favorable conditions for environmental, social, and corporate governance initiatives. 
The deal gets further sweetened up as Variable interest rates can go upto 5.8% per year. The bond is set to commence on December 12 on Cathay’s proprietary STO exchange platform.
The FSC has paved the way for <a href="https://news.todayq.com/franklin-templeton-ceo-predicts-tokenization-revolution/" rel="noopener noreferrer nofollow">tokenized assets</a> as securities since 2019. However, regulations cap fundraising at $930,000, limiting entities to a maximum of two STOs annually.
Enterprises and accredited investors are exclusive to these STOs. The latter constrained to a $9,300 investment cap in STOs.
Cathay Securities collaborated with risk-control tech firm Numerix and Professor Ye Zongying of National Chung Hsing University to establish credible STO interest rate pricing.
The resulting STO evaluation model calculates the default probability for small and medium-sized businesses. It boasts a claimed accuracy of “95%.” A Digital Yuan bond in Taiwan 
China’s Digital Yuan makes waves in Taiwan as Xiamen Xiangyu Group (XMXYG) issued the first cross-strait integrated <a href="https://news.todayq.com/chinas-digital-yuan-crosses-the-taiwanese-strait/" rel="noopener noreferrer nofollow">Digital Yuan bond</a>. They raised a total $68 million, marking significant achievement for the CBDC across the Taiwanese Strait. A portion of these funds will fuel practical applications of the digital yuan through XMXYG’s Taiwan branch.
© Todayq News

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