NH Investment & Securities (005940.KS) and Koscom are moving to commercialize security token offerings (STOs) ahead of the law taking effect next February that will bring tokenized securities under formal regulation.
NH Investment & Securities said on the 13th that it had signed a memorandum of understanding (MOU) with Koscom the previous day to develop a token securities platform business, at Koscom's headquarters in Yeouido, Seoul. The two companies plan to work in phases on technology cooperation related to token securities platforms and distributed ledgers, review ways to use a joint platform, identify underlying assets and business models suited to tokenized securities, and conduct technical verification before launching services.
Through the partnership, NH Investment & Securities will also examine the possibility of applying tokenization to standardized securities such as bonds. Tokenized securities have so far been discussed mainly in the context of non-standardized products backed by real assets, but recent reviews have looked at expanding their scope to standardized securities such as bonds.
The chief executive said the integration of digital assets into the regulated financial system would bring new changes not only to the issuance and distribution structure of capital markets but also to financial services as a whole. The CEO added that NH Investment & Securities would continue to identify business opportunities to extend its capital market capabilities into digital-based financial services.
