Xtreme Business Enterprises pioneers electronic record of asset legal ownership

In line with China’s 14th Five-Year Plan, which supports Hong Kong’s development as an international innovation and technology hub, and the HKSAR government’s support for technological initiatives, Xtreme Business Enterprises Limited (XBE) has successfully launched the world’s first Digital Ownership Token (DOT) Standard 3+2 Security Token Offering (STO).

Based on its pioneering DOT technology, XBE’s STO will help drive the future development of Web 5 (centralised Web 2 + decentralized Web 3) and blockchain assets. But unlike other digital tokens, XBE’s DOT uses blockchain technology to record legal documents and smart contracts – providing authentication and legally enforceable ownership over real tangible and/or intangible assets. Its DOTs can be applied across many different assets and industries, including intellectual property, real estate and memberships.

DOT Standard 3+2 STO uses the DOT standard to record bond documents and corresponding smart contracts into the Bond Security Token. As such, the token itself becomes the security – allowing token holders to directly hold and control their own assets, while enhancing the certainty, security, efficiency and transparency of security tokens. DOT also eliminates the need for a third-party custodian to hold onto the underlying asset, mitigating risks associated with traditional securities custody.

XBE leverages DOT standard STO to also provide a more advanced, efficient, secure and cost-effective alternative to bond offerings. In addition to using the DOT standard, 3+2 STO also includes three professional audits (i.e. Security Token, Legal and Regulatory Audits) and two opinions (i.e. Legal and Regulatory Opinions) to provide greater certainty and security.

DOT Standard 3+2 STO fully implements and adopts blockchain and smart contract technologies. The clear record of bond ownership effectively protects the interests of investors, providing a more secure, efficient, transparent and innovative bond offering approach for the capital markets.

XBE’s proprietary technology, the world’s first DOT Standard 3+2 STO, is already gaining  recognition, adoption and support from industry and partners. Recently China Information Technology Development Limited (“China Information Technology” or “CITD”, HKEx stock code: 8178) have employed the proprietary DOT technology and completed the issuance of Hong Kong’s first DOT Standard tokenized bonds with an aggregate principal amount of up to HK$100 Million.

This technology provides greater efficiency, security and transparency for bond holders. Reducing the risks associated with traditional securities custody, DOT standard STOs are expected to become widely adopted in the future, eventually replacing other form of documentation. Hong Kong is taking the lead in the development of Web 5 applications, helping corporations enhance their brand image and unlock new business opportunities, creating a win-win situation.