Article Source: Project Dynamics
China Cinda International Asset Management Limited (referred to as 'Cinda International Asset Management') announced on December 16, 2024, the successful issuance of short-term asset-backed liquidity notes token STBL arranged by it on the Ethereum blockchain, targeting professional investors (for definition, see Hong Kong Law Chapter 571 (Securities and Futures Ordinance)). This will be the first case of a financial institution in Hong Kong arranging the issuance of transferable tokenized repackaged notes. GF Securities (Hong Kong) Brokerage Limited and Hash Blockchain Limited (referred to as 'HashKey Exchange') acted as the first distributors in this issuance and played a key role in ensuring the smooth issuance of STBL.
Through note tokenization, the issuance and transfer of STBL do not rely on third-party intermediaries such as clearing houses; both issuance and transfer are automatically recorded in real time on the blockchain, allowing anyone to view and verify the transfer records on the blockchain, thereby improving transparency. The structure of STBL notes enables 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 face value of 1 USD, maintains stable value, and automatically distributes daily accrued interest to the wallets of professional investors in the form of newly issued tokens on each monthly distribution day. The underlying assets of STBL are a portfolio of AAA-rated money market funds (MMFs). The manager of STBL (Cinda 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 the highest-rated MMFs, STBL provides a reliable and stable return investment option. Its high liquidity further enhances its product appeal, allowing for daily subscriptions and redemptions. STBL can be transferred 24/7, and the attributes and legal structure of the relevant assets of STBL allow it to be applicable in international investment scenarios.
China Cinda International Asset Management will serve as the manager of STBL, while NVT will provide blockchain operational services as the blockchain agent for STBL and technical support for the issuance of STBL on the blockchain. GF Securities (Hong Kong) Brokerage Limited and HashKey Exchange will serve as the first distributors of STBL.
To attract more investors to participate and optimize the long-term return structure, China Cinda International Asset Management will discuss with HashKey Group, a leading digital asset financial services group with a global presence in Asia, to introduce an innovative incentive mechanism in the issuance and distribution of STBL, which will be aimed at all STBL investors. Meanwhile, China Cinda International Asset Management is also exploring the possibility of further in-depth cooperation with HashKey Group, intending to expand the issuance of STBL to the Ethereum Layer 2 network, HashKey Chain, which, if implemented, is expected to significantly expand the investor base of STBL.
Regarding the successful issuance and distribution of STBL:
Liu Jialing, Managing Director of China Cinda International Asset Management, stated: 'We are honored to announce that the company's first transferable tokenized notes have been successfully launched, supported by a series of money market funds. This innovative financial product highlights Hong Kong's important position as a global financial innovation center. This achievement not only marks an important milestone for the 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 better financial services for investors. The company has always focused on promoting innovation in the financial sector and is excited about the ongoing progress and impact of this pioneering initiative.'
Mr. Zeng Chao, CEO of GF Securities (Hong Kong), stated: 'GF Securities (Hong Kong)'s participation in the distribution of Cinda's tokenized products marks a new step for us in the field of tokenized collaborations, further enriching the ecosystem of tokenized securities in Hong Kong. Our vision is to promote cooperation among different institutions in the industry in the tokenization field, to form a set of industry standards for mutual recognition and exchange of products within the industry, and to drive product innovation and enrich the services provided to clients.'
Terence Pu, Managing Director of HashKey Exchange, stated: 'We are honored to participate in the STBL project together with well-known partners such as Cinda 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 Jianguo, founder and CEO of NVT, stated: 'NVT is very honored to participate in the successful issuance of STBL on the Ethereum blockchain. This is not only an outstanding case of financial product tokenization but also an important milestone for blockchain technology empowering traditional finance. NVT, as a core participant in STBL, provides safe, reliable, and scalable comprehensive technology solutions for the issuance and distribution of STBL. This successful practice is attributed to Hong Kong's open and inclusive financial innovation environment as well as the active participation and support from all sectors of the industry. We believe that through innovative cooperation with industry participants, we can more efficiently promote the digital transformation of the capital market, enhancing transparency, efficiency, and global accessibility. The advantages of financial technology in improving the efficiency of traditional financial systems, reducing costs, and expanding markets 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 jointly build an innovative and prosperous ecosystem for the digital capital market, allowing the dividends of financial technology to benefit all market participants.'
About China Cinda International Asset Management
China Cinda International Asset Management, established in 1993, is a wholly-owned subsidiary of China Cinda International Holdings Company Limited. It 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). China Cinda International Asset Management is the core platform for the diversified asset management business of China Cinda Asset Management Co., Ltd. and its subsidiaries (the 'China Cinda Group') overseas. Leveraging the China Cinda Group's extensive business network across the country, comprehensive resource support, international investment perspective, deep understanding of cross-border investment and financing, and efficient execution, China Cinda International Asset Management has become a platform rooted in the Greater China region and actively participating in global investment business.
About NVT
NVT is a financial technology company deeply rooted in Hong Kong, with its founders and core team having deep experience in both Hong Kong and international capital markets, possessing keen insights into local market dynamics and a global strategic vision. NVT, as an institutional innovation partner in Hong Kong's capital market, is dedicated to building infrastructure that connects traditional finance and 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 January 2024 to successfully issue the first tokenized securities applicable to Hong Kong law in Hong Kong, making it the first Chinese broker to complete the 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, covering virtual asset brokerage system, RWA tokenization system, and enterprise-grade digital wallet solutions. With professional capabilities and market foresight, NVT is committed to promoting the deep integration of traditional finance and the digital economy, creating value and winning competitive advantages for clients amid 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 broker focused on the Asian market, with advantages from China and characteristics of the Greater Bay Area. Over nearly 20 years of development, GF Securities (Hong Kong) has provided a comprehensive range of financial services including global securities, investment banking, wealth management, brokerage, and investment management to global and local enterprises, institutions, retail, and high-net-worth clients, holding the SFC's 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 presence. Since 2018, HashKey Group has built a global Web3 ecosystem spanning Hong Kong, Singapore, Japan, Bermuda, and other locations within a high compliance regulatory framework.
About HashKey Exchange
HashKey Exchange is committed to defining 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 obtained approval from the Hong Kong Securities and Futures Commission (SFC) and holds licenses for Type 1 (Securities Trading) and Type 7 (Providing Automated Trading Services) under the Securities and Futures Ordinance, as well as a license for operating virtual asset trading platforms under the Anti-Money Laundering Ordinance, ensuring compliant operation of the virtual asset trading platform. As the flagship business of HashKey Group, HashKey Exchange provides one-stop virtual asset trading services for professional investors (PIs) 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.
