Coinsilium Group Limited (AQSE:COIN, OTCQB:CINGF) has updated investors on its strategic partnership with Yellow Network, ahead of the forthcoming Yellow token launch.
The company said the token is expected to be treated as a utility token based on information provided, with functions limited to network access, collateral and settlement activities. It added that the tokenomics do not include profit-sharing or buy-back mechanisms.
"Within the context of applicable regulation, on the basis of information made available to the company, the YELLOW token will be classified as a Utility Token," Coinsillium explained.
"Utility tokens are designed to enable specific functions within a given network or protocol, and the token to be issued by Yellow Network has been structured solely to provide such functional utility. In major jurisdictions, including the US, UK and EU, regulatory guidance distinguishes utility tokens—whose purpose is to enable access to and participation in specific network functions—from tokens that operate as investment instruments."
Coinsilium noted that today's update supersedes previous public statements concerning the token’s economic design and is intended to ensure disclosures remain aligned with current regulatory frameworks.
The company highlighted that it has been a long-standing backer of the Yellow Network project under a SAFT agreement entitling it to receive US$200,000 in value of tokens, subject to vesting.
And, it added that initial discussions have begun regarding further post-launch collaboration with Yellow Network, including potential support for ecosystem projects and work on decentralised governance initiatives. Both organisations will also participate in the Consensus Hong Kong 2026 event in February.