Banking industry creates STO infrastructure…We’re aiming for the next generation of blue ocean
NH Bank develops STO platform
Role of supporting the issuance of token securities by fragmented investment companies
Hana Bank, STO Consortium, STO Consortium
cooperating with Shinhan and Woori bank Sculpture Investment Companies
This article has been translated into English through AI.
[Edaily Marketin Reporter Kim Yeon-seo] Major Korean banks are in the midst of expanding their territory to enter the token securities issuance (STO) business, in which real assets such as real estate, Korean beef, art, and luxury goods are tokenized and invested. The banking sector is working together to build STO infrastructure.
According to the financial investment industry on Monday, Korea’s top five banking sectors – KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, Woori Bank and Hana Bank – announced their advancement into the STO business last year and started building infrastructure. In April last year, a consortium of banking STO was formed led by Nonghyup Bank. Kookmin Bank, Shinhan Bank, IBK Industrial Bank, SH Suhyup Bank and Jeonbuk Bank are participating.
The industry is paying attention to the actions of Nonghyup Bank, which is preparing to build an STO platform. Nonghyup Bank is working on building infrastructure to contribute to the creation of an STO market ecosystem. In June, it was selected as the government’s “2024 blockchain private sector concentration and diffusion project”. It played a role in establishing a token securities issuance platform and supporting fragmented investors to issue token securities.
Hana Bank is working on an STO project at the Hana Financial Group level. Last year, it formed the STO consortium Next Finance Initiative (NFI) with Mirae Asset Securities and SK Telecom. According to the financial investment industry, NFI has applied for the designation of innovative financial services by the Financial Services Commission.
Shinhan Bank will jointly start a joint venture with Sejong Telecom and Shinhan Investment & Securities in June. The bank plans to expand its users by linking with the blockchain-based service “Bibrick.” Shinhan will also provide a variety of services including △ new link to accounts for deposits and withdrawals in connection with Sejong Telecom’s real estate investment service “Bibrick,” △ check of deposits and withdrawals △ management of deposits △ participation in the blockchain network. Shinhan Investment & Securities plans to cooperate with the bank in areas such as supporting the issuance and distribution of token securities.
Woori Bank is planning a “Win-Win Finance No. 1 STO” that provides funds to small and medium-sized business owners, and a ship finance STO that will be introduced after designation of innovative finance. In addition, it is also working with INF Consulting to build a token securities platform for the STO consultative body Finance 3.0 Partners. In August last year, Woori Bank, Samsung Securities, and SK Securities formed an F3P consultative body with the aim of mutual cooperation in the token securities sector. Recently, Kyobo Securities also joined the F3P consultative body.
The banking sector’s construction of STO infrastructure is expected to continue in the second half of the year. “The construction of STO infrastructure in the second half of the year will continue,” an industry official said. “The banking sector expects to create new revenue sources and provide customers with various investment opportunities.” “There is still uncertainty in issuing securities using blockchain technology due to regulations,” he added. “It is necessary to prepare various measures such as countermeasures against regulations and investor protection devices.”