Fusang Launches Asia’s First Security Token Exchange
The Hong Kong-based market operator will offer tokenization services and a platform for trading security tokens, becoming the first licensed STO venue in Asia.
Fusang Exchange, a unit of Hong Kong-based financial infrastructure provider Fusang Group, recently announced it had received the green light from regulators in Labuan, Malaysia for its upcoming digital securities exchange.
The platform will operate as a traditional securities exchange but also offer markets for security tokens. It is also licensed to trade cryptocurrencies and fiat currencies. Fusang Exchange will only offer trading to a network of fully licensed partners that will be able to use the market directly.
“We’ve always seen Labuan as a fantastic option for businesses to work in, and this license reiterates Labuan FSA’s dedication to making Labuan a pro-business environment. We look forward to working with them to bring a whole new range of companies and industries into the digital asset space,” Fusang CEO Henry Chong said.
The exchange is targeting both crypto-related companies planning a security token offering (STO) and traditional businesses seeking tokenization. Fusang claims it can achieve lower costs for some companies that have decided to bypass traditional exchanges.
“With higher costs, it’s natural that the focus of traditional exchanges has always been on larger companies. But companies that want liquidity in their stock, along with owners of real assets such as real estate, can consider the benefits of listing on our exchange. While we’re working on the infrastructure of the exchange, we’re also focusing on how we can develop innovative business models and capital raisings for issuers,” Chong added.
The official launch of the market is planned for the second half of 2019. Rolling out security token exchanges in the USA, Europe, and Asia, is a relatively slow process, unlike the launch of pure cryptocurrency exchanges. With much heavier regulatory requirements, only a handful of tokens is being traded, and STO issues have been slow in picking up this year.