CITD and XBE Pioneer Innovation with Launch of World's First DOT Standard 3+2 STO and NSTO
Luisa Crawford Jul 18, 2023 12:43
China Information Technology Development Limited (CITD) and Xtreme Business Enterprises (XBE) have announced the successful launch of the world's first Digital Ownership Token (DOT) Standard 3+2 Security Token Offering (STO) and Non-Security Token Offering (NSTO).
China Information Technology Development Limited (CITD) and Xtreme Business Enterprises (XBE) have announced the successful launch of the world's first Digital Ownership Token (DOT) Standard 3+2 Security Token Offering (STO) and Non-Security Token Offering (NSTO). This marks a significant milestone in the evolution of blockchain assets and the development of Web 5.
CITD, a leading technology company specializing in AI and cloud technologies, and XBE, a pioneer in Web 3 and blockchain assets, have aligned their efforts with China's 14th Five-Year Plan and Hong Kong's vision of becoming an international innovation and technology hub. The government has introduced measures to foster the growth of Web 3, blockchain assets, and smart city initiatives, responding to the rising demand for digital ownership verification.
XBE's DOT Standard 3+2 STO and NSTO leverage XBE's proprietary DOT technology. Unlike conventional digital tokens, XBE's DOT employs blockchain technology specifically designed to authenticate legal documents and smart contracts, providing legally enforceable ownership of tangible and intangible assets via tokenization. The versatility of DOTs allows their application across various sectors, including intellectual property, real estate, memberships, and more.
The DOT Standard 3+2 STO uses the DOT standard to record bond documents and corresponding smart contracts into the Bond Security Token. This allows token holders to directly hold and control their own assets, enhancing the certainty, security, efficiency, and transparency of security tokens. It also eliminates the need for a third-party custodian and complex trust structures, mitigating risks often found in the traditional securities market.
In collaboration with Petaverse, CITD and XBE have also launched the Non-Security Token Offering (NSTO). Petaverse is a virtual pet metaverse where individuals can own unique virtual pets and engage in interactive play. The NSTO aims to build a global community of pet enthusiasts, connecting pet lovers from around the world and fostering a supportive community.
Dr. Herbert Lee, Founder and Chairman of XBE, commented, "We are excited to utilize the DOT standard for STOs, demonstrating the versatility of our DOT technology across various assets and industries." Mr. Daniel Wong, Chairman and CEO of CITD, added, "The utilization of blockchain technology in place of traditional documentation for bond issuance showcases our ability to fully adopt blockchain and smart contract technologies through the DOT standard STO and NSTO."
In the past, CITD has shown its commitment to leveraging blockchain technology for innovative solutions. In a notable event, CITD announced its plan to issue HK$100 million worth of Bonds using distributed ledger technology (DLT). The Bonds, with a maturity date set for June 27, 2053, were documented using the Digital Ownership Token (DOT) standard and implemented through a binding Ricardian Contract. This approach allowed investors to directly hold and control their own securities, eliminating the need for a third-party custodian.
The use of the DOT standard in the Bond Security Token set a new precedent in the bond market, offering enhanced security and transparency compared to traditional paper-based bond offerings. The tokenization of debt instruments using DOTs enabled a clear record of ownership and simplified the transferability of securities. Additionally, the elimination of third-party custodians reduced risks associated with securities custody.
CITD's decision to embrace DLT and the DOT standard aligned with its strategic vision for the development of Web3.0 and blockchain business. As the Hong Kong government actively supports the growth of Web3.0 and decentralized finance (DeFi) industries, CITD aimed to leverage its expertise in digital transformation to pioneer innovative solutions in various sectors, including finance, healthcare, and logistics.
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