http://www.coindeskkorea.com/news/articleView.html?idxno=73643
The Korea Securities Depository has launched a blockchain-based security token experiment.
According to the Public Procurement Service’s Nara Marketplace on the 6th, the Korea Securities-Type Token Issuance (STO) platform selected Blocko last month as a service provider to verify the concept . STO issues securities in the form of blockchain-based tokens and must meet the conditions of securities under the Capital Markets Act.
The goal of the business is to verify the concept of the’distributed ledger-based STO securities infrastructure network’ and the’infrastructure platform integrated STO issuance and settlement’. KFTC plans to design a standard distributed ledger that can be expanded to not only listed securities, but also other non-listed securities such as small offerings and OTC derivatives.
Blockchain developer Blocko, who received the order for this project, will build the system for 5 months from early this month to early October. The final report is expected to be completed at the end of November after a two-month mock test.
A KSD official said, “This project is to look into STO internally, not to commercialize it immediately. This project is separate from the Financial Services Commission’s innovative financial services (financial regulation sandbox) and the Busan Blockchain Freedom Special Zone project.
In foreign countries, experiments are being conducted for STOs, such as preparing relevant legislation.
Large Japanese securities companies such as SBI Holdings, Nomura, and Daiwa established the STO Association in 2019, and the Japanese Financial Services Administration (FSA) recognized the association as an accredited financial product trading association in 2020. In addition, Sumitomo Mitsui Trust Bank issued Japan’s first stock-type token in March.
The German Federal Financial Supervisory Service (BaFin) also approved the first cross-border STO in Europe in March 2020. The Russian Securities Depository launched a project to tokenize unregistered stocks of small medical companies in Switzerland in 2019.
Financial authorities in the U.S. and Singapore revised regulations related to STO in 2019. In order to do an STO in the United States, the token must be registered with the Securities and Exchange Commission (SEC).
Securities Depository, under the Financial Services Commission, is a public institution that manages and processes securities held by domestic investors. Stocks and bonds purchased by an investor from a securities company are stored by the KSD. In 2019, KFTC introduced the electronic securities system, which handles the transfer of securities and exercise of rights on an electronic basis instead of paper securities.