Main Highlights

KB Securities, NH Investment & Securities, and Shinhan Investment Corporation have joined forces to establish a consortium dedicated to tokenized securities.

The consortium’s primary objective is to develop a shared infrastructure and broaden the range of strategic business models.

This partnership was officially sealed on September 26, 2023.

Establishing a Consortium

On September 27, 2023, KB Securities, NH Investment & Sеcurities, and Shinhan Investment Corporation made a collective announcement about the formation of a consortium with the shared objective of venturing into the tokenized sеcurities market. These three entities have all played an active role in the tokenized securities sector, independently creating systems for issuing tokenized securities, exploring investment products, and establishing blockchain committees.

Collaborative Strategic Initiative

The consortium was established in recognition of the constraints on individual market expansion efforts. The presidents of the three firms, namely Jung Young-chae of NH Investment & Securities, Park Jung-rim of KB Securities, and Kim Sang-tae of Shinhan Investment Corporation, inked a formal business agreement on September 26, 2023, to solidify their collaborative efforts.

Goals and Strategies

The consortium’s objectives encompass the establishment of a shared infrastructure and the expansion of strategic business models. Their collaborative efforts will span various areas, including the development of common infrastructure for tokenized sеcurities, distributed ledger verification, policy coordination, and the exploration of innovative models for issuing and distributing tokenized sеcurities.

Efficiency in Costs and Market Strategy

One of the pivotal strategies in this partnership is to attain cost efficiency and leverage economies of scale for both issuers and investors. Through the establishment of a unified distributed ledger, the consortium seeks to diminish construction and operational expenses, enabling the firms to concentrate their efforts on the tokenized sеcurities market.

About

KB Sеcurities has played a pioneering role in this field, having created and tested a system for issuing and distributing tokenized sеcurities. NH Investment & Securities has been providing comprehensive support throughout the entire lifecycle, from issuance to liquidation, through its ‘All-in-One Investment Contract Sеcurities Service.’ Meanwhile, Shinhan Investment Corporation has been diligently developing essential expertise in the tokenized sеcurities sector via multiple proofs of concept.

The consortium has asserted that their partnership “will usher in substantial transformations within the tokenized securities market” and “pave the way for a new era in the Korean financial market.”