Korea finally enacted legislation last month to support tokenization and security tokens. At the same time, two consortia received preliminary approval for over the counter trading venues. One is led by the Korea Exchange (KRX) and the other by Nextrade (NXT), an alternative trading venue. Shinhan Securities has signed an agreement with the NXT consortium, which is focused on fractional investments of real world assets (RWA). Apart from Shinhan and NXT, the consortium involves seven fractional investment platforms.
Shinhan’s role includes managing investor accounts and providing a distributed ledger solution for future conversion of investments into security tokens.
For its part, Nextrade is the alternative stock trading venue that launched last year, the first to challenge the KRX monopoly. Backed by many of Korea’s securities firms, it has been so successful with stock trading that it had to reduce the range of stocks it trades in order to limit trading to a maximum of 15% of KRX volumes, as required by law for alternative venues.
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