KB Securities, Shinhan Investment Corp, and NH Investment & Securities Form Consortium to Lead Token Securities Market

KB Securities, Shinhan Investment Corp., and NH Investment & Securities announced on the 27th that they have signed a memorandum of understanding (MOU) regarding the overall formation of a 'Token Securities Consortium' to jointly enter the token securities (ST) market.

The three companies agreed that a joint infrastructure composed of major securities firms is necessary to revitalize the token securities market. They plan to expand the scope of collaboration beyond building joint infrastructure to include discovering strategic business models.

Through the consortium formation, they will mutually cooperate on ▲building joint infrastructure for token securities and distributed ledger verification ▲joint response to token securities policies and establishment of industry standards ▲discovering synergy business models for token securities issuance and distribution services.

The three firms aim to achieve both cost efficiency and economies of scale for issuers and investors. By establishing a joint distributed ledger among securities firms, they can reduce construction and operation costs, avoid unnecessary infrastructure competition, and focus more on the token securities business area, enabling a smooth landing in the token securities market. Additionally, through collaboration, they can secure a large number of issuers with various underlying assets and enable product issuance and distribution, providing an attractive platform for investors.

Since last year, KB Securities has rapidly formed a dedicated team to develop and verify token securities issuance and distribution systems, showing a leading movement in the token securities business, including forming the token securities cooperative chain 'ST Owners.' KB Securities has also argued that economies of scale through joint token securities infrastructure are a prerequisite for revitalizing the token securities market. Based on its construction experience, KB Securities plans to contribute to standardizing securities firms' token securities infrastructure in this consortium.

Shinhan Investment Corp. tested the process from token securities issuance to distribution through a PoC (Proof of Concept) earlier this year. At the end of last year, it was designated as the first securities firm to receive innovative financial service status for token securities, building infrastructure such as blockchain and securities account system integration, thereby accumulating core competencies related to the token securities business. It has also established the 'STO Alliance,' an ecosystem of financial companies, technology firms, and issuers, and plans to contribute to future market revitalization by creating various token securities issuance demonstration cases in connection with the securities consortium.

NH Investment & Securities has taken the lead in implementing a sound token securities ecosystem by forming the token securities consultative body 'STO Vision Group' earlier this year, which includes fractional investment operators and underlying asset appraisal companies. In particular, in August, it launched the All-in-One service for investment contract securities, a core business model of token securities, supporting the entire process from issuance to settlement for issuers. NH Investment & Securities stated that it will do its best to ensure that its business area know-how is well reflected in the joint business.

The consortium said, "The cooperation of the three securities firms will bring significant changes to the token securities market," and added, "We will open a new financial paradigm and lead the Korean financial market."

This content was produced with the assistance of AI translation services.