Korea’s Financial Services Commission (FSC) has designated Kyobo Life as a trust business for the purposes of issuance of security tokens to finance aircraft engines. It aims to fractionalize the cost of acquiring aircraft engines. The company will act as the trustee responsible for the real world assets (RWA), in this case the aircraft engine, and will issue trust beneficiary certificates. Galaxia Money Tree will then tokenize these certificates on its tokenization platform as part of a security token offering (STO).
Hence, instead of aircraft engine financing that is syndicated to a few institutional investors, there will be small investments by private individuals.
In late 2023 a security token consortium was formed for the purposes of aircraft financing with Galaxia handling the overall management. Shinhan Securities and Eugene Investments are consortium members to enable the distribution of the security tokens. It also includes aviation analytics firm Cirium and VMIC, a local aircraft leasing firm.
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