Hong Kong, December 23, 2024 - Xinda International Asset Management Limited (referred to as “Xinda International Asset Management”) announced on December 16, 2024, the successful issuance of the short-term asset-backed liquidity note token STBL arranged by it on the Ethereum blockchain. The target customers of STBL are professional investors (for relevant definitions, please refer to Hong Kong Laws Chapter 571 (Securities and Futures Ordinance)). This will become the first case of a transferable tokenized packaged restructuring note arranged and issued by a financial institution in Hong Kong. GF Securities (Hong Kong) Brokerage Limited and Hash Blockchain Limited (referred to as “HashKey Exchange”) served as the initial distributors for this issuance and played a key role in ensuring the smooth issuance of STBL.
Through the tokenization of notes, the issuance and transfer of STBL do not rely on third-party intermediaries such as clearing houses; its issuance and transfer are automatically recorded in real-time on the blockchain, and anyone can view and verify the transfer records on the blockchain, thereby enhancing transparency; the structure of STBL notes allows traditional financial market investors to seamlessly access blockchain products while meeting the investment needs of cryptocurrency market investors for traditional financial products.
Each STBL has a par value of $1 and maintains a stable value, distributing daily accrued interest to the wallets of professional investors automatically in the form of newly issued tokens on monthly payment days. The relevant assets of STBL are a portfolio of AAA-rated money market funds (MMFs). The manager of STBL (Xinda International Asset Management) will publish the average daily yield of its relevant assets and underlying MMFs from the previous week on a public website weekly. By utilizing top-rated MMFs, STBL provides a reliable and stable investment option. Its high liquidity further enhances its product attractiveness, allowing subscriptions and redemptions on a daily basis. STBL can be transferred 24/7, and the attributes and legal structure of the relevant assets of STBL make it applicable to international investment scenarios.
Xinda International Asset Management will serve as the manager of STBL, with NVT providing blockchain operation services for STBL as its blockchain agent and providing technical support for the issuance of STBL on the blockchain. GF Securities (Hong Kong) Brokerage Limited and HashKey Exchange serve as the first distributors of STBL.
To attract more investors to participate and optimize the long-term return structure, Xinda International Asset Management will discuss with HashKey Group, a leading digital asset financial services group with a global layout, to introduce innovative incentive mechanisms in the issuance and distribution of STBL, targeting all STBL investors. At the same time, Xinda International Asset Management is also exploring the possibility of further cooperation with HashKey Group, planning to expand the issuance of STBL to the Ethereum Layer 2 network HashKey Chain. If implemented, this move is expected to significantly broaden the investor base of STBL.
Regarding the successful issuance and distribution of STBL:
Liu Jialing, Managing Director of Xinda International Asset Management, stated: “We are honored to announce that our first transferable tokenized notes have been successfully launched, supported by a series of money market funds. This innovative financial product showcases Hong Kong’s important position as a global financial innovation center. This achievement not only marks an important milestone for our company but also provides enhanced liquidity and security for investors. Through this pioneering initiative, we are committed to injecting new vitality into the financial market and providing investors with higher quality financial services. Our company has always focused on promoting innovation in the financial sector and is excited about the continued progress of this pioneering initiative and its impact.”
Mr. Zeng Chao, CEO of GF Securities (Hong Kong), stated: “GF Securities (Hong Kong) participating in the distribution of the Xinda tokenized product marks a new step in our collaboration in the tokenization field, further enriching the ecosystem of tokenized securities in Hong Kong. Our vision is to promote collaboration among different institutions in the industry in the field of tokenization, establish a set of industry standards, achieve mutual recognition and exchange of products in the industry, and drive product innovation while enriching the services provided to our clients.”
Terence Pu, Managing Director of HashKey Exchange, stated: “We are honored to participate in the STBL project alongside well-known partners such as Xinda Asset Management, NVT, and GF Securities (Hong Kong). This collaboration marks an important milestone in promoting the development of Hong Kong’s financial market. Under the guidance of regulatory authorities, HashKey Exchange is committed to expanding the range of compliant products and services to better serve our clients. The STBL project not only enhances operational efficiency but also provides investors with stable and low-risk returns, thereby boosting market confidence. As the largest licensed virtual asset exchange in Hong Kong, HashKey Exchange focuses on bridging the gap between high-quality STO products and the growing cryptocurrency investor community. We also look forward to the participation of HashKey Chain, which will provide more innovative on-chain financial solutions for the project.”
Zhao Jiangong, founder and CEO of NVT, stated: “NVT is honored to participate in the successful issuance of STBL on the Ethereum blockchain, which is not only an excellent case of financial product tokenization but also an important milestone in empowering traditional finance with blockchain technology. As a core participant of STBL, NVT provides safe, reliable, and scalable comprehensive technical solutions for the issuance and distribution of STBL. This successful practice benefits from Hong Kong's open and inclusive financial innovation environment and the active participation and support from various industry players. We believe that through innovative collaboration with various industry players, we can more efficiently promote the digital transformation of the capital markets, enhancing transparency, efficiency, and global accessibility. The advantages of fintech in improving the efficiency of the traditional financial system, reducing costs, and expanding the market are gaining broader recognition, injecting new vitality into consolidating Hong Kong's core position as an international financial center. In the future, we look forward to extensive cooperation with more financial institutions to build an innovative and prosperous digital capital market ecosystem, allowing the benefits of fintech to reach all market participants.”
About Xinda International Asset Management
Xinda International Asset Management was established in 1993 and is a wholly-owned subsidiary of Xinda International Holdings Limited. Xinda International Asset Management is a licensed corporation regulated by the Securities and Futures Commission (SFC) and has been licensed by the SFC to conduct regulated activities under Type 4 (advising on securities) and Type 9 (asset management). Xinda International Asset Management is the core platform for China Cinda Asset Management Co., Ltd. and its subsidiaries (the “China Cinda Group”) to conduct diversified asset management business overseas. With the extensive network of China Cinda Group across the country and comprehensive support in resources, combined with the team's international investment vision, deep understanding of cross-border investment and financing business, and efficient execution capabilities, Xinda International Asset Management has become a platform rooted in the Greater China region and actively engaged in global investment business.
About NVT
NVT is a fintech company deeply rooted in Hong Kong, with its founders and core team possessing a solid background in the Hong Kong and international capital markets, combining keen insights into local market dynamics with a global strategic vision. As an institutional innovative partner in Hong Kong’s capital market, NVT is dedicated to building infrastructure that connects traditional finance with the Web3 world, becoming a pioneer in constructing the digital capital market ecosystem. As a leading infrastructure provider in the Web3 field, NVT assisted GF Securities (Hong Kong) in successfully issuing the first tokenized security compliant with Hong Kong law in January 2024, making it the first Chinese-funded brokerage to complete tokenized issuance and distribution of self-created financial assets on a public chain.
NVT focuses on providing comprehensive digital infrastructure and technology solutions for financial institutions and corporate clients, with its core business covering virtual asset brokerage systems, RWA tokenization systems, and enterprise-level digital wallet solutions. With its professional capabilities and market foresight, NVT is committed to promoting the deep integration of traditional finance and the digital economy, creating value for clients and gaining competitive advantages in the rapidly evolving digital wave.
About GF Securities (Hong Kong)
GF Securities (Hong Kong), namely GF Holdings (Hong Kong) Limited (hereinafter referred to as “GF Holdings (Hong Kong)”) and its subsidiaries, is the core platform for GF Securities Co., Ltd. (stock code: 000776.SZ, 1776.HK) to promote its internationalization strategy. GF Securities (Hong Kong) Brokerage Limited is a subsidiary of GF Holdings (Hong Kong) Limited.
GF Securities (Hong Kong) is committed to becoming a leading Chinese-funded brokerage focused on the Asian market, with Chinese advantages and characteristics of the Greater Bay Area. Over nearly 20 years of development, GF Securities (Hong Kong) has provided comprehensive financial services such as global securities, investment banking, wealth management, brokerage, and investment management to global and local enterprises, institutions, retail, and high-net-worth clients, holding Hong Kong SFC licenses for Type 1, 4, 6, and 9.
About HashKey Group
HashKey Group is a leading digital asset financial services group in Asia with a global reach. Since 2018, HashKey Group has built a global Web3 ecosystem covering places such as Hong Kong, Singapore, Japan, and Bermuda within a highly compliant regulatory framework.
About HashKey Exchange
HashKey Exchange aims to set new benchmarks for virtual asset exchanges in terms of compliance, capital protection, and platform security. Hash Blockchain Limited (HashKey Exchange) is one of the first licensed retail virtual asset exchanges in Hong Kong. It has been approved by the Hong Kong Securities and Futures Commission (SFC) and holds licenses for Type 1 (securities trading), Type 7 (providing automated trading services) under the Securities and Futures Ordinance, as well as a license for operating a virtual asset trading platform under the Anti-Money Laundering Ordinance, operating the virtual asset trading platform in compliance. As the flagship business of HashKey Group, HashKey Exchange provides one-stop virtual asset trading services for professional investors (PI) and retail investors. HashKey Exchange has obtained ISO 27001 (information security) and ISO 27701 (data privacy) management system certifications. To comply with laws and regulations, HashKey Exchange does not provide services to users in mainland China, the United States, and certain other jurisdictions.
*Note: As of December 11, 2024, ranked 6th in CoinGecko's global exchange rankings, making it the highest-ranked licensed virtual asset exchange in Hong Kong.