[Interview] Kim Jong-hwan, Blocko representative
STO platform ‘Silver Mine’ development… “STO, also promising in the field of creators”
The era of the domestic ‘Securtiy Token (ST)’ opens in earnest. Recently, as the financial authorities announced that they would overhaul the issuance and distribution regulatory system for securities-type digital assets (securities-type tokens), the securities industry and the blockchain industry have become busy preparing for related businesses.
In particular, ‘love calls’ to blockchain technology companies are continuing. This is thanks to the Financial Services Commission’s announcement that it will use distributed ledger-based blockchain technology when issuing security tokens. Accordingly, demand for blockchain platforms and solutions that can support issuance is increasing.
https://ads.mtgroup.kr/RealMedia/ads/adstream_sx.ads/news1_pc/news@x04 Among many technology companies, Blocko, well-known as a ‘first-generation blockchain company’, is the biggest beneficiary. This is because it has been the most preemptive in responding to Security Token Offerings (STOs) in Korea. Starting with the Korea Exchange (KRX) startup OTC stock market in 2016, it has built the most STO-related cases in Korea, going through a comprehensive real estate study project in 2018 and a proof of concept (PoC) for the Korea Securities Depository STO platform in 2022.
◇Preemptive response to ‘1st generation’ down… Blocko, which introduced the STO platform ‘Silver Mine’
Kim Jong- hwan, CEO of Blocko, met with <News 1> on the 26th and emphasized that Blocko has been the most preemptive in responding to the STO permission in Korea.
He said, “We have been building related cases since 2016 when we had to use the Bitcoin blockchain because there were few blockchain platforms on the market.”
Financial authorities, including the Korea Securities Depository, did not view security tokens themselves positively from the beginning. However, CEO Kim explained that he was positive about using blockchain to trade non-financial assets, such as carbon credits, or assets for which transaction tracking is important.
Blocko, which has built related cases through this, started promoting its dedicated platform as soon as the financial authorities allowed STO in earnest this year. Currently, Blocko is providing security token issuance platform ‘Silver Mine’ for free testing.
CEO Kim said, “Silvermine was originally a solution that was delivered to financial companies, but as STO became legal, it became possible to release it in the form of SaaS (Software as a Service). Since we already have a solution, we were able to respond quickly to the STO permission.” he explained.
As it has accumulated know-how related to STO, Blocko has incorporated the characteristics of security tokens that are different from general virtual assets into Silver Mine. In addition to issuance, manager functions necessary for STO such as incineration, capital increase and reduction, and division were added.
CEO Kim said, “Since security tokens are different from general virtual assets, various functions must be considered. You cannot use a general virtual asset issuance platform that does not have functions like potatoes.” According to the keynote of , it was released with added features.”
Silver Mine utilizes Blocko’s self-developed blockchain platform Argo and private blockchain platform Coinstack. It is also compatible with the Ethereum Virtual Machine (EVM).
Currently, it is known that financial authorities will not allow public blockchains such as Ethereum to be used as a basis for issuing security tokens. In order for the issuer to manage relevant data, such as ownership of tokens, it is expected that a private blockchain or enterprise (business use) blockchain platform, where only the operator can check the data, will be used. Blocko also recognized this point and designed Silver Mine.
CEO Kim said, “First of all, because the enterprise blockchain is likely to be used as the issuance base, we used Argo and Coinstack together.” .
In addition, he emphasized that Blocko’s strength is that there are services that have already been released and tested. CEO Kim said, “The strength of Blocko and Silvermine as STO platforms is that they have services that are already being delivered to customers.” In the case of other companies, there are many cases of responding to STO recently, but Blocko explains that it has a service that has already completed market verification thanks to its preemptive response.
◇Which fields are suitable for STO? “Suitable for creator business”
While preemptively responding to STO, CEO Kim has been deeply concerned about the changes that will occur with STO permission. He predicted that assets in the form of ‘points’ such as creators’ profits or carbon credits would emerge through STO rather than real assets such as real estate.
Commonly, STO is well known as a means to divide and tokenize ownership of real estate or expensive artworks and enable ‘piece investment’. Rather than this well-known form, it is explained that security tokens will be more appropriate when sharing the profits of creative activities.
CEO Kim said, “STO is a business that one-person creators or MCNs (multi-channel networks) can try. Token) businesses that distribute profits to holders are emerging, and this is also the domain of STOs.”
He added, “It would be good for the government to be able to estimate the income of YouTubers and creators, who have been unclear how much they earn.” A similar concept can be used to tokenize carbon credits, he emphasized.
Regarding the fact that the domestic financial authorities allowed STO, he said, “It is not the fastest in the world, but it is true that it is a ‘fast follower’.”
CEO Kim said, “It seems that the authorities in Korea have done a lot of research on why blockchain-based transactions are necessary and which assets are good for tokenization. I think it was a well-thought-out decision.”
As STO was allowed, it was also emphasized that securities companies that distribute security tokens and companies in charge of issuance should establish a good collaboration system. Currently, the financial authorities have taken the lead in separating the securities token issuance channel and the distribution channel.
CEO Kim said, “According to the financial authorities’ stance of separating issuance and distribution, securities companies will have a business model of distributing security tokens and taking commissions.” “Blockchain companies can provide an issuance platform.