- South Korea’s major banks have started working on security tokens after receiving approval from the financial regulator.
- Three major commercial banks have joined the token alliance led by NongHyup Bank.
- The alliance aims to create a growing ecosystem by launching a platform to issue token securities in the coming months.
South Korea’s financial regulator has given approval to banks to work on security tokens, with the country’s major banks starting their efforts after receiving the green light. The token alliance, led by NongHyup Bank, has been joined by three major commercial banks, including Korea Industrial Bank, Woori Bank, and Shinhan Bank.
South Korean Banks Begin Work on Security Tokens
Security tokens are digital versions of financial instruments and represent ownership shares in assets such as bonds, debts, publicly traded stocks, and intellectual property. The alliance began with the participation of six fractional investment companies, a financial institution, and fintech firm Trackchaing. Artpion joined the consortium, bringing the number of participants to 18.
NongHyup Bank, as the de facto consortium leader, stated that they would engage in mutual exchange of ideas with other participants to ensure compliance with regulations. The alliance aims to create a growing ecosystem by launching a platform to issue token securities in the coming months.
In February 2023, the Financial Services Commission (FSC) announced that existing securities rules would regulate security tokens. Following this announcement, Mirae Assets made an announcement to launch a security token alliance with SK Telecom. Additionally, companies like Korea Investment & Securities have revealed plans to launch a blockchain platform for security tokens. Shinhan Securities is also continuing its efforts to advance in this area.
