Financial IT company Koscom, majority-owned by the Korea Exchange, will be working with five companies to develop a blockchain platform for unlisted securities.
Five companies have been onboarded by Koscom to create a blockchain-based platform for unlisted securities. Korea Accelerator Association, KEB Hana Bank, Hana Financial Investment, Techno Park and Amicus Rex will all help make this a reality. Koscom is owned by Korea Exchange, the sole securities operator in the country.
The platform will target tokenized securities from unlisted SMEs and will launch sometime in the second half of 2019. Each member of the coalition will play a separate role in this project:
- The Accelerator will attract startups to the platform.
- Daejeon Techno Park is in charge of corporate investment information.
- KEB Hana Bank has an escrow service which will be used for payments.
- Amicus Rex will handle legal concerns and issue stock transfer agreements and stock certificates.
- Koscom will be creating the blockchain technology necessary for the platform.
Koscom is currently involved in digital identity systems with blockchain technology and was chosen by Korea’s Financial Services Commission for shareholder list management.
As of now, not many South Korean players are in the security token industry. Exchanges like Bithumb, however, are actively exploring possibilities.
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Image courtesy of Trustonic.