Arta TechFin (ARTA), a hybrid fintech platform in both traditional assets and virtual assets, and OSL, the digital asset business division of BC Technology Group, have on Wednesday entered into a strategic partnership to create an end-to-end VA financial service ecosystem.

Subject to obtaining required regulatory approvals, the partnership intends to offer a full spectrum of regulated VA solutions, including origination of asset-backed security tokens, secondary trading of physically-settled and cash-settled VA spot and VA derivatives, and custody of OTC and exchange- traded VA, both parties said in a statement.

Riding on the tailwind of the Hong Kong Government’s progressive VA policies, they said their joint effort will continue to support Hong Kong’s development as the global VA financial center.

For primary market origination, ARTA shall use its best effort to appoint OSL as the placing agent for its security token offering in Hong Kong.

ARTA’s corporate finance team shall take the lead in tokenization technology service, deal sourcing and structuring, and fund raising. This activity is subject to regulatory approval.

For secondary trading, OSL shall be appointed as ARTA’s exclusive trading partner to conduct physically-settled VA trading activities for a period of 12 months.

Where OSL engages in cash-settled VA derivatives trading, ARTA shall also provide OSL with cash-settled VA derivatives trading services including but not limited to Chicago Mercantile Exchange listed VA futures and options and Hong Kong Exchange listed VA future exchange traded derivatives.

OSL, through an omnibus account model, will support ARTA’s end-clients with institutional-grade performance VA trading and safe-keeping facilities.

ARTA and OSL, both headquartered in Hong Kong, are jointly developing ecosystems bring global VA access to institutional and retail clients.

Investors can benefit from the full protection of the Hong Kong regulatory regime, including client assets segregation, financial transparency, and stability.

Regulated traditional financial and VA services are seamlessly integrated to create the next generation ecosystem for better liquidity, product variety, and security.

“This game-changing partnership gives birth to an institutional-class total VA solution that serves global institutional and individual clients. Hong Kong’s progressive VA policies lay a strong foundation for us to take advantage of this unique opportunity,

“We are committed to supporting the development of a vibrant VA ecosystem in Hong Kong,” said Eddie Lau, ARTA’s Chief Executive Officer.

Arta TechFin is a hybrid financial (HyFi) platform bridging traditional finance with blockchain-based financial system via technology innovations.

Its regulated one-stop solution enables corporates, financial institutions, and family offices to access traditional assets and virtual assets.

ARTA, through its various subsidiaries, are licensed under Hong Kong Securities and Futures Commission.

Its other licenses include Hong Kong Stock Exchange participant, insurance brokerage
license, trustee license and money lending license in Hong Kong as well as Eurex participant in Germany.

“We are thrilled to enter into this strategic partnership with ARTA. We look forward to servicing the digital asset trading and fundraising needs of ARTA and its clients,

“This partnership will allow us to leverage our expertise in the digital asset space to drive growth in the fintech industry,” said Hugh Madden, Chief Executive Officer of BC Group and OSL.

Backed by Asia’s leading public fintech and digital asset company, BC Technology Group, OSL is the world’s first insured and SFC-licensed digital asset platform.

Founded in 2018, the company has a long history in the sector and is recognized by many as the leader in providing comprehensive regulated and licensed digital asset solutions.

The firm offers markets services (brokerage, exchange, and custody) and software as a service (SaaS) technology solutions, which deliver institutional clients and professional investors access to the virtual asset platform, as well as the liquidity pools.

Its secure and insured hot and cold wallet infrastructure also ensures the safekeeping of digital assets with timely transaction settlements.

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