Signum Digital, a subscription platform for security token offerings (STO) jointly owned by Coinstreet Holdings and Somerley Capital Holdings, announced on March 16, 2023, that it received an approval-in-principle from the Hong Kong Securities and Futures Commission (SFC).
This approval allows Signum Digital to operate a security token offering and a subscription platform named “CS-Pro,” which serves professional investors and offers funds to qualified issuers in Hong Kong and international markets. This licence is still subject to meeting the final approval conditions of the SFC.
Samson Lee, Signum Digital’s CEO and Coinstreet’s Founder, explained that Signum Digital aims to bridge the gap that SMEs face in traditional fundraising channels and limited options for high-quality alternative investment opportunities for professional investors.
He noted that Signum Digital is confident that its CS-Pro security token offering and subscription platform can bring significant value to issuers of security token projects and professional investors in Hong Kong and worldwide.
Signum Digital will provide a fully compliant asset tokenization and distribution model for professional investors, covering a broad range of asset types such as private equities, debts, real estate, investment funds, and other alternative investment assets. The company combines Coinstreet’s expertise in security digitization and asset tokenization with Somerley’s knowledge of conventional corporate finance best practices.
Martin Sabine, Chairman of Somerley Capital Holdings, remarked that “there is considerable pent-up demand among professional investors to deploy a proportion of their portfolio into digital assets.
According to Sabine, while the events of 2022 may have caused some loss of confidence in certain aspects of the crypto world, they still firmly believe that digital assets will be crucial to the future of finance. Sabine sees Signum Digital’s security tokens (STOs) as a moderately risky method for participating in these future opportunities.
Security tokens are a recently introduced virtual asset that utilizes blockchain technology and can represent ownership in tangible assets, like real estate and art collectibles, etc. This connection to tangible assets can potentially decrease the risk for potential investors, aid in their due diligence, and provide a foundation for the market value of the security token.
Clara Chiu, CEO of QReg Advisory and Former Head of Fintech and Licensing Director of the SFC, stated:
“We are proud to have advised Signum on the design of their STO platform and helped them secure the first-ever SFC licence for such a platform in Hong Kong.”
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