During the past year Korea’s banks and securities companies have started building token issuance platforms and collaborating on tokenization consortia. The institutions are forging ahead despite the delay in passing legislation to support security token issuance. This week Woori Bank signed a distribution deal with a secondary market operator and applied to participate in a regulatory sandbox. Additionally, NH NongHyup Bank reportedly received Won 1 billion ($732,000) in funding from the Korea Internet & Security Agency (KISA) to develop its token issuance platform. It’s expected to be ready by November this year.
In August last year Woori Bank entered into a ‘mutual cooperation council’ with Samsung Securities (Korea’s second largest brokerage) and SK Securities. The Finance 3.0 Partners (F3P) decided to collaborate to explore business models, ‘verify infrastructure’ and establish investment protection measures. It now appears that the infrastructure piece means they are building a joint token issuance solution.
Last week Woori Bank signed a deal with Piece, the Korean fractional investment marketplace operated by Buysell Standards. Piece is entering the digital asset space and together they plan to offer two new security token products. One will provide financing to SME merchants, and another relates to shipping finance.
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