Coinstreet Holdings Limited and a subsidiary of Somerley Capital Holdings Limited have entered into a joint venture agreement with an aim to provide professional advisory and management consulting service for security token offerings ("STO"), and to serve the rising need for asset tokenization and fundraising through issuing of digitized securities from Hong Kong enterprises ("JV"). The JV will apply for all required approvals and licenses under the regulatory framework and guidelines from the Securities and Futures Commission (''SFC''). Subject to the satisfaction of the relevant regulatory requirements, it is envisaged that the JV will develop "CoinstreetPRO Hong Kong," an online initial subscription platform and primary market brokerage services for tokenized assets and digital securities ("TADS") serving institutional and professional investors. It is intended that the JV will work with other licensed virtual asset trading platforms and STO exchanges for secondary trading activities. Virtual assets, including STOs, are emerging as an innovative way to facilitate capital raising and investment in businesses and projects. STOs typically refer to specific offerings which are structured to have features of traditional securities offerings and which involve security tokens utilizing blockchain technology. A comprehensive STO offering implemented within the Hong Kong regulatory environment would offer issuers an alternative avenue for fund-raising and professional investors an investment opportunity alongside with the more traditional fundraising routes. By combining Coinstreet's highly innovative Fintech solutions and technical expertise in STOs from overseas markets, and Somerley's extensive experience and best governance practices in the conventional corporate finance and advisory sector, this strategic partnership provides adequate resources and know-how to power the development of the JV's STO business.