Image Credit: hashkey.com
- HashKey launched its first hToken securities product for eligible professional investors on October 26.
- The tokenized product is linked to Class A units of HashKey Fintech Opportunities Limited.
- HashKey warned that qualified investors participating in the complex offering could lose their entire principal.
HashKey said on Oct. 26 that its first hToken securities product was available to eligible professional investors. The product, linked to an existing fund, accepts subscriptions in USDT.
hToken Product Linked to HashKey Fund
HashKey RWA, the group’s tokenization arm, selected Class A units of HashKey Fintech Opportunities Limited as the product’s underlying asset. HashKey Capital Management (BVI) Limited manages the fund.
The product gives investors economic exposure linked to the performance of the underlying assets, HashKey said.
An earlier HashKey-authored release said the product became available on Oct. 22 through HashKey Exchange’s wealth channel; the Oct. 26 announcement referred to the channel as Earn.
Tokenization uses digital tokens to represent or provide exposure to financial assets. HashKey said its approach allows an existing fund to support a tokenized product without major changes to the fund itself.
Custody and Investor Rights
HashKey said the underlying asset is held in independent custody, with legal title segregated, and the relevant fund interests held under a trustee arrangement. The product’s smart contracts were deployed on HSK Chain, where records are maintained.
The company said trust certificates held by investors do not represent direct ownership of the underlying fund units. The product documents set out investors’ economic rights, risks, transfer restrictions and options for pursuing a claim.
HashKey said subscriptions and redemptions are handled through the exchange for eligible professional investors. Its announcements did not disclose detailed redemption terms or a minimum subscription.
Offering Restricted to Professional Investors
HashKey described the offering as a complex financial product available exclusively to qualified professional investors. It warned that investors could lose their entire principal.
The company also said the product has not been registered under the U.S. Securities Act and may not be offered or sold in the United States or to U.S. persons. In its earlier release, HashKey said the fund and related tokenization arrangements had not been authorized or approved by Hong Kong’s Securities and Futures Commission.
HashKey said it combined its asset-management, blockchain and trading capabilities with services from banking, custody and legal partners. It plans to explore applying the framework to other assets, including bonds, equities and structured products, but has not announced launch dates.
