Taiwan’s Financial Supervisory Commission (FSC) has granted Cathay Securities the country’s first security token offering (STO) license. Cathay’s “Sunshine Green Yield” STO bonds, with a maturity of six years, an initial annual interest rate of 3.5%, and a principal amount of 30 million New Taiwan Dollars ($0.93 million), have received regulatory approval. These bonds allow enterprise owners to purchase green electricity on the market for environmental, social, and corporate governance initiatives and receive variable interest rate payments of up to 5.8% per year. Trading for the bonds will begin on December 12 on Cathay’s in-house STO exchange platform. The FSC has classified tokenized assets as securities since 2019, allowing financial institutions to apply for licensing. However, there are fundraising limits and restrictions on the number of STOs that can be conducted per year. The offerings are available to enterprises and accredited investors, with a maximum purchase limit for the latter. Cathay Securities has partnered with Numerix and professor Ye Zongying to develop Taiwan’s first STO evaluation model, claiming it to be 95% accurate in calculating the default probability of small and medium-sized businesses. Founded in 2004, Cathay Securities is one of Taiwan’s largest financial services firms, serving millions of investors and brokerage clients.

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Information	Details
Geography	Asia
Countries
Sentiment	positive
Relevance Score	1
People	Ye Zongying
Companies	Cathay Securities, Financial Supervisory Commission (FSC), Numerix, National Chung Hsing University
Currencies	New Taiwan Dollar
Securities	None