South Korea’s big banks started working on security tokens after getting approval from the financial regulator.
South Korea continues to make breakthroughs in the field of Blockchain and cryptocurrencies. However, the country’s financial regulator has given banks approval for security tokens.
South Korean Banks Begin Work on Security Tokens
Major banks in South Korea came together to create security tokens after getting approval from the financial regulator. Three other major commercial banks such as Industrial Bank of Korea, Woori Bank and Shinhan Bank joined the token alliance, which started under the leadership of NongHyup Bank.
Security tokens are digital versions of financial instruments and represent ownership interests in assets such as bonds, debt, publicly traded stocks and intellectual property. The alliance started with the participation of six fractional investment companies, financial institutions and Fintech firm Trackchaing. Artpion joined the consortium, increasing the number of participants to 18.
NongHyup Bank stated that as the de facto consortium leader, they will exchange ideas with other participants to ensure compliance with the regulations. The alliance aims to create a thriving ecosystem by launching a platform for issuing token securities in the coming months.
The Financial Services Commission (FSC) announced in February 2023 that current securities rules will regulate securities tokens. Following this announcement, Mirae Assets announced to launch a security token alliance with SK Telecom. In addition, companies such as Korea Investment & Securities have also announced their plans to launch a blockchain platform for security tokens. Shinhan Securities, on the other hand, continues to work to advance in this area.
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