Koscom and NH Investment & Securities are moving to develop related platforms and business models in preparation for the implementation of the security token offerings (STOs) regime. The two companies plan to integrate Blockchain technology into existing securities operations and also review the tokenization potential of standardized securities such as bonds.
Koscom said on the 13th that it signed a memorandum of understanding (MOU) with NH Investment & Securities on the 12th at its headquarters in Yeongdeungpo-gu, Seoul, to promote a security token offerings (STOs) platform business.
Through this agreement, NH Investment & Securities will join Koscom's joint platform service for security token offerings (STOs). The two companies will proceed step by step with technical cooperation on STO platforms and distributed ledger technology, plans to use the joint platform, the discovery of underlying assets and business models suited to STOs, and technical verification before launching services.
NH Investment & Securities plans to review the technical requirements needed for the STO business with Koscom and ways to link them with existing securities operation systems. It also plans to verify whether distributed ledger technology can be applied to actual securities issuance and distribution processes, aiming to lay the groundwork for commercialization after the system goes into effect.
The tokenization of existing standardized securities, such as bonds and equity securities, is also included in the scope of cooperation. The two companies plan to analyze business processes ranging from product issuance to rights management and redemption, and to examine the feasibility of business models that can issue and manage standardized securities on a Blockchain basis.
Bae Gwang-su, CEO of NH Investment & Securities, said, "Through this collaboration with Koscom, we will proactively verify the infrastructure and business processes necessary for the STO business and continuously identify business opportunities to expand our capital market capabilities into digital-based financial services."
Yoon Chang-hyun, president of Koscom, said, "By combining NH Investment & Securities' broad securities business, investment banking (IB), and wealth management (WM) capabilities with Koscom's capital market IT and Blockchain technology, we will verify the stability and scalability of the joint platform and build a solid foundation for the security token offerings (STOs) issuance market."
Koscom has previously expanded cooperation related to the joint platform for security token offerings (STOs) with Kiwoom Securities, Daishin Securities, and IBK Securities.