22 Mar Signum Digital Obtained the Approval-In-Principle from the SFC on the First Security Token Offering and Subscription Platform in Hong Kong
The Tokenizer March 17, 2023
Coinstreet Holdings Limited is a leading global professional consultancy firm and solution provider in the digital asset sector, and Somerley Capital Holdings Limited is a leading financial group in Hong Kong with an established track record in the corporate finance advisory space in Greater China. Signum Digital Limited, is the joint venture of Coinstreet and Somerley, and has received an approval-in-principle from the Securities and Futures Commission (“SFC”) for its security token offering and subscription platform. This is the first of its kind in Hong Kong.
Security tokens are a new type of blockchain-based virtual asset that may represent ownership in actual assets, such as real estate. The link to real-world assets may reduce the risk to prospective investors, assist their due diligence process and underpin the market value of the offering. Blockchain technology provides a transparent and efficient basis for digital assets to be traded in real time. Transactions are permanently and immutably recorded on blockchain, through cost efficient mechanisms and programmable governance in the form of automated smart contracts. Subject to satisfying the conditions for final approval from SFC, this license will allow Signum Digital to operate a security token offering and subscription platform under the brand of “CS-Pro“, serving professional investors and providing funding for issuers with qualified projects in Hong Kong and international markets.
Samson Lee, CEO of Signum Digital and Founder of Coinstreet commented, “In today’s financial market, SMEs face many challenges in traditional fundraising channels, and professional investors also have limited options for high quality alternative investment opportunities. Signum Digital aims to fill such a gap and we believe the CS-Pro security token offering and subscription platform can add much value to Hong Kong and international security token project issuers and professional investors.”
Martin Sabine, Chairman of Somerley, commented: “We believe there is considerable pent-up demand among professional investors to deploy a proportion of their portfolio into digital assets. The events of 2022 may have shaken their confidence in parts of the crypto world but not their belief that digital assets will play a pivotal role in the future of finance. STOs distributed by Signum Digital, backed by real assets and income streams, are in our view a medium risk way of participating in these future opportunities.”
Clara Chiu, CEO of QReg Advisory and Former Head of Fintech and Licensing Director of the SFC said, “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. We are pleased to work with Signum which shares our passion for innovation and our commitment to excellence. The SFC’s license to Signum’s STO platform is truly ground-breaking, and we believe that it has the potential to revolutionize the way that businesses raise capital. We are thrilled to be a part of this exciting development in the industry!”
Combining Coinstreet’s security digitization and asset tokenization expertise with Somerley’s grounding in best practice for conventional corporate finance, Signum Digital will offer professional investors fully compliant asset tokenization offering and distribution model which may cover a wide array of asset types and classes ranging from private equities, debts, income bearing notes, real estate, investment funds, commodities, and fixed assets, capital equipment, to carbon credits, arts & collectibles and other alternative investment assets.
About Signum Digital
Signum Digital Limited is a joint venture company between Coinstreet and Somerley for the provision of brokerage and distribution services to professional investors through STOs, through a platform operated under the brand of “CS-Pro.”
Founded in 2017, Coinstreet is an award-winning professional advisory and consulting firm in the Digital Asset sector. Coinstreet also offers innovative Fintech services, as well as business and operation solutions, covering four key business segments including: (1) TOKENIZATION BUSINESS – Digitized Securities & Security Tokens (STO); (2) ASSET MANAGEMENT – Custodian, DeFi, Investment Funds; (3) WEB3, METAVERSE & UTILITY TOKENS – NFT, Stablecoin, Loyalty Tokens; and (4) ACCELERATOR – Education, PR, Events, Marketing, Consultation. Coinstreet is a co-organizer of the TADS Awards – the world’s first international award for Tokenized Assets and Digitized Securities sector, and is a co-organizer of the Digital Asset Series / DAS – a series of seminars that aim to provide free education for the general public about the ever-growing landscape of digital assets and facilitate mass adoption.
Somerley Capital Holdings Limited is a public company listed in Hong Kong (stock code: 8439). The Somerley Group includes subsidiaries licensed to conduct Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The Somerley Group is principally engaged in providing corporate finance advisory and fund-raising services through its subsidiaries based in Hong Kong and Beijing.