What's In Your Wallet
Chinese Logistics Company is Preparing a Security Token For The INX in America
The Chinese freight SaaS service provider HGC Info Tech plans to list a digital security token on the American digital asset exchange INX at some point later this month.
A Chinese digital software-as-a-service (SaaS) company named HGC Info Tech has said that it would launch the Trucpal digital security token later this month with the goal of achieving $20 million in funding.
In accordance with U.S. Securities rules and regulations, HGC, which caters to the Chinese freight sector, intends to list the token on the American digital asset exchange INX. This choice was made at a time when an increasing number of Chinese businesses are concerned that auditing rules may result in their delisting from the American stock market.
HGC made the decision to create its own security token after realizing the ongoing need for blockchain solutions and other types of digital assets. The business worked with blockchain experts to achieve this. The owner of the blockchain-powered SaaS platform Trucpal is getting set to offer the first security token to the Chinese freight market, and the company will hopefully successfully complete its IPO on the INX on July 25.
The SaaS company with its headquarters in Xiamen believes that the freight sector in China is the most lucrative market in the world with a projected annual output of $1.5 trillion in 2020 and a transportation volume of more than 52 billion tons in 2017.
The company believes that the security token will enable millions of Trucpal platform users to profit financially and will support the development of its freight ecosystem. The INX, which released its own security tokens in 2019 and raised $130 million as a result of the success of that attempt, is now a prospective long-term partner as a result of this activity.
“lNX is the market pioneer for US-compliant digital securities issuance and trading services. In order to successfully issue the Trucpal token in accordance with U.S. regulatory regulations, HGC will benefit substantially from its collaboration with lNX.
The HGC’s founder, Wendong Zhang
Zhang added that the token has the potential to significantly advance the HGC system and win the support of millions of users. The issuance of Trucpal security tokens, in his view, “may be a long-term win-win development while providing potential advantages for Trucpal Token investors,” he continued.
The Trucpal token was created in compliance with the rules and legislation that control the sale of securities in the United States, and its launch is slated for later this month. Due to auditing regulations, approximately 200 Chinese firms that are listed in the United States may be delisted, therefore this was done.
The Holding Foreign Firms Accountable Act, sometimes referred to as the “HFCAA,” was enacted by the American government in 2020. The public must have access to the audit working materials for publicly traded corporations in the United States under this statute. The law states that public businesses will be delisted from American stock exchanges within three years if they refuse to provide access to their financial data.
Early this month, talks between the United States and China aimed to reduce the dangers of delisting and allow a handful of Chinese companies to continue trading on American exchanges. The outcome of the negotiations “hinges in part over the scope of redactions in audit work papers of Chinese corporations,” according to a report by Bloomberg journalists Lydia Beyoud and Jenny Leonard. The progress of the negotiations depends on this information.
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