Aviation engine trust beneficiary securities (fractional investment) issuance service promoted by Fintech corporations Galaxia Moneytree has hit a snag.
Initially, the company planned to launch a Blockchain-based airline engine fractional investment product within the year, the first in Korea. However, as financial authorities conveyed the view that it would be desirable to issue the product after obtaining a license for trust beneficiary securities investment brokerage, the issuance schedule was pushed back.
According to the financial investment industry on the 20th, Galaxia Moneytree has put on hold its ongoing aviation engine fractional investment product issuance business.
Fractional investment is an investment method in which ownership of expensive items such as aircraft engines or ships is split and issued and distributed in the form of securities. Galaxia Moneytree was designated as an innovative financial service by the Financial Services Commission (FSC) in Apr. last year and prepared to launch a Blockchain-based aircraft engine trust beneficiary securities issuance service. At the time, Shinhan Investment & Securities and EUGENE INVESTMENT & SECURITIES participated as distribution and trust partners.
Although the trustee changed this Mar. from EUGENE INVESTMENT & SECURITIES to Kyobo Life Insurance, the company subsequently proceeded with selecting aircraft engines and was on the verge of launching within the year.
However, the situation changed rapidly as a dedicated "small license" (trust beneficiary securities investment brokerage) for fractional investment was created through a revision of the Enforcement Decree of the Financial Investment Services and Capital Markets Act in Feb. this year and took effect from Jun. A financial authority official said, "There was a special case called an innovative financial service, but with the relevant system in place, there is no longer a need to grant special cases," and added, "Now you can operate within the institutional framework."
Galaxia Moneytree applied for the small license in Sep. and halted product issuance based on the existing innovative financial service. As it takes up to about six months until the authorization result comes out after completing the preliminary and main reviews, Galaxia Moneytree is expected to be able to issue products from the second quarter of next year. As the product launch was delayed compared with the original plan, the person in charge of the related business moved to another company.
A partner company official said, "It is concerning that the departure of the key person in charge recently seems to have somewhat sapped momentum for pushing the business," and added, "Still, once authorization is granted, product issuance will be possible right away depending on the company's drive."
Meanwhile, KOSDAQ-listed Galaxia Moneytree has been grouped as a leading token securities (STO) stock, and its share price has surged 44% this year (Jan. 2–Nov. 19) from 6,930 won to 10,000 won. Although the share price has been on a downward trend in the second half, as recently as Jun. this year it spiked to 14,460 won on expectations of benefiting from the new administration's digital asset pledges, including the legalization of token securities.
A Galaxia Moneytree official said, "We applied in Sep. for authorization to issue trust beneficiary securities investment brokerage, and the aviation engine fractional investment business is proceeding as planned in stages."