China Information Technology Development Limited (CITD) and Xtreme Business Enterprises (XBE) have announced the successful launch of the first 3+2 standard Security Token Offering (STO) of Digital Ownership Token (DOT) and Non-Security Token Offering ( NSTO) of the world. This marks a significant milestone in the evolution of blockchain assets and the development of Web 5.

CITD, a leading technology company specializing in artificial intelligence 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 the vision of Hong Kong to become an international center of innovation and technology. The government has introduced measures to encourage the growth of Web 3, blockchain assets, and smart city initiatives, in response to the growing demand for digital ownership verification.

XBE’s DOT Standard 3+2 STO and NSTO take advantage of 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 through tokenization. The versatility of DOTs allows for its application in various sectors, including intellectual property, real estate, memberships, and more.

The DOT 3+2 STO standard uses the DOT standard to register bond documents and corresponding smart contracts in the bond security token. This allows token holders to directly hold and control their own assets, improving 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 metaverse of virtual pets where people can have unique virtual pets and participate in interactive games. 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 president of XBE, commented, “We are excited to use the DOT standard for STO, demonstrating the versatility of our DOT technology across various assets and industries.” Mr. Daniel Wong, President and CEO of CITD, added: “Utilizing blockchain technology instead of traditional bond issuance documentation shows our ability to fully embrace blockchain technologies and contracts. through DOT’s STO and NSTO standards.

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 Notes, 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 greater security and transparency compared to traditional paper bond offerings. The tokenization of debt instruments using DOT allowed for a clear record of ownership and simplified the transferability of securities. Additionally, the elimination of third-party custodians reduced the risks associated with the custody of securities.

CITD’s decision to adopt DLT and the DOT standard aligned with its strategic vision for Web3.0 and blockchain business development. As the Hong Kong government actively supports the growth of the Web 3.0 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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