- Guotai Junan International plans to issue various tokenized securities in Hong Kong, leveraging digital ledger technology for issuance, trading, and custody.
- The company received regulatory confirmation from Hong Kong’s Securities and Futures Commission for its planned business activities, which include digital bonds and structured products.
- This move supports China’s 2035 goal of building major global financial institutions and advances Hong Kong’s positioning as a hub for digital securities.
Guotai Junan International, a subsidiary of China’s largest state-backed securities brokerage, will introduce several types of tokenized securities in Hong Kong. The company plans to use digital ledger technology, or DLT, for handling issuance, trading, and custody of these new products, according to Guotai Junan International’s official announcement.
A company spokesperson confirmed that business plans were submitted to Hong Kong’s Securities and Futures Commission, which responded by email that there were “no further questions.” This communication was taken as approval for Guotai Junan International’s proposed activities.
The planned initiatives fall into two categories. The first will involve participating in the issuance of digital bonds. The second will focus on structured products—tokenized securities linked to assets such as over-the-counter derivatives, structured notes, funds, and bonds. Structured products are financial tools that bundle and customize traditional investments based on investor needs. The firm stated that its approach will reflect trends established globally, such as the D7 digital securities platform used by the Deutsche Börse, which relies on blockchain and smart contracts to automate large-scale securities issuance.
For digital bonds, Guotai Junan International intends to coordinate some bond launches and aims to be a “settlement bank” for future projects. Hong Kong is currently offering subsidies on digital bond issuance costs to encourage more firms to choose the city as a base for these activities, a strategy that is also being followed by Singapore.
According to additional details, this initiative aligns with China’s broader strategy to create ten leading brokerage firms and establish two or three globally competitive investment banks by 2035, referenced in a recent Reuters report. By moving forward with tokenized securities, Guotai Junan International supports both national goals and Hong Kong’s ambitions to become a digital securities hub.
To learn more about the company’s latest developments, visit their official site at GTJAI.
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