Hong Kong, December 23, 2024 - Xinda International Asset Management Limited (referred to as “Xinda International Asset Management”) announced the successful issuance of the short-term asset-backed liquidity note token STBL on the Ethereum blockchain on December 16, 2024. The target clients for STBL are professional investors (for definitions, please refer to Hong Kong Ordinance Chapter 571 (Securities and Futures Ordinance)). This will become the first case of transferable tokenized bundled restructured notes issued by a financial institution in Hong Kong. Guangfa 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. Its 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 increasing 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 par value of USD 1 and maintains a stable value, with daily accumulated interest automatically distributed to professional investors' wallets in the form of newly issued tokens on each monthly dividend day. The relevant assets of STBL are composed of AAA-rated money market fund (MMF) portfolios. The manager of STBL (Xinda International Asset Management) will publish the average daily yield and underlying MMFs of its relevant assets for the previous week on a public website every week. By utilizing highly rated MMFs, STBL offers a reliable and stable investment option. Its high liquidity further enhances its product appeal, allowing for daily subscriptions and redemptions. STBL can be transferred 24/7, while the attributes and legal framework of its relevant assets make it applicable to international investment scenarios.
Xinda International Asset Management will act as the manager of STBL, NVT will provide blockchain operation services as the blockchain agent for STBL, and provide technical support for the issuance of STBL on the blockchain. Guangfa Securities (Hong Kong) Brokerage Limited and HashKey Exchange act as the first distributors of STBL.
To attract more investors to participate and optimize the long-term yield 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, which will be aimed at all STBL investors. Meanwhile, Xinda International Asset Management is also exploring the possibility of further cooperation with HashKey Group, intending 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:
Xinda International Asset Management Managing Director Liu Jialing stated: “We are honored to announce that our first transferable tokenized note has 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 a significant 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 higher-quality financial services to investors. Our company has always focused on promoting innovation in the financial sector, and we are excited about the ongoing progress and impact of this pioneering initiative.”
Guangfa Securities (Hong Kong) CEO Zeng Chao stated: “Guangfa Securities (Hong Kong)'s participation 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 cooperation among different institutions in the industry in the field of tokenization, establish a set of industry standards, achieve mutual recognition and interchange of products, and drive product innovation and enrich the services we provide to our clients.”
HashKey Exchange Managing Director Terence Pu stated: “We are honored to participate in the STBL project alongside well-known partners such as Xinda Asset Management, NVT, and Guangfa 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 Hong Kong's largest licensed virtual asset exchange, HashKey Exchange focuses on bridging the gap between high-quality STO products and the growing community of cryptocurrency investors. We also look forward to the participation of HashKey Chain to provide more innovative on-chain financial solutions for the project.”
NVT founder and CEO Zhao Jianguo stated: “NVT is very 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 in STBL, NVT provides secure, reliable, and scalable integrated technical solutions for the issuance and distribution of STBL. This practice was successfully completed thanks to Hong Kong's open and inclusive financial innovation environment and the active participation and support of various industry parties. We believe that through innovative cooperation with industry partners, we can more efficiently promote the digital transformation of capital markets, enhancing transparency, efficiency, and global accessibility. The advantages of fintech in improving the efficiency of traditional financial systems, reducing costs, and expanding markets are gaining more widespread recognition, injecting new vitality into consolidating Hong Kong's core position as an international financial center. We look forward to extensive cooperation with more financial institutions in the future to jointly build an innovative and prosperous digital capital market ecosystem, allowing the dividends of fintech to benefit 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 (the “SFC”) and is 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 business network of China Cinda Group across the country, comprehensive support in resources, international investment vision of the team, in-depth understanding of cross-border investment and financing, and efficient execution capabilities, Xinda International Asset Management has become a platform rooted in Greater China and actively participating in global investment business.
About NVT
NVT is a fintech company deeply rooted in Hong Kong, with its founders and core team having a solid foundation in the Hong Kong and international capital markets, possessing keen insights into local market dynamics and a global strategic vision. As an institutional innovation partner in Hong Kong's capital market, NVT 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 provider of infrastructure in the Web3 field, NVT assisted Guangfa Securities (Hong Kong) in successfully issuing the first tokenized securities applicable under Hong Kong law in January 2024, making it the first Chinese-funded brokerage to complete tokenization 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 core services covering virtual asset brokerage systems, RWA tokenization systems, and enterprise-level 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 for clients and gaining a competitive advantage in the rapidly evolving digital wave.
About Guangfa Securities (Hong Kong)
Guangfa Securities (Hong Kong), namely Guangfa Holdings (Hong Kong) Limited (hereinafter referred to as “Guangfa Holdings (Hong Kong)”) and its subsidiaries, is the core platform for Guangfa Securities Co., Ltd. (stock code: 000776.SZ, 1776.HK) to promote its internationalization strategy. Guangfa Securities (Hong Kong) Brokerage Limited is a subsidiary of Guangfa Holdings (Hong Kong).
Guangfa Securities (Hong Kong) is committed to becoming a leading Chinese-funded brokerage focused on the Asian market, with Chinese advantages and Bay Area characteristics. Over nearly 20 years of development, Guangfa Securities (Hong Kong) has provided comprehensive financial services such as global securities, investment banking business, wealth management, brokerage, and investment management to global and local enterprises, institutions, retail, and high-net-worth clients, holding the Hong Kong SFC Type 1, 4, 6, and 9 licenses.
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 covering Hong Kong, Singapore, Japan, Bermuda, and other locations within a highly compliant regulatory framework.
About HashKey Exchange
HashKey Exchange is committed to defining new benchmarks for virtual asset exchanges in terms of compliance, fund security, and platform safety. 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 (dealing in securities), 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 in compliance with regulations. As HashKey Group's flagship business, HashKey Exchange provides one-stop virtual asset trading services for professional 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, it ranked 6th in the global exchange rankings on CoinGecko, making it the highest-ranked licensed virtual asset exchange in Hong Kong.