Banks, Securities, and Fragmented Investment Collaboration All-Out… Will the STO Wind Blow in the Second Half?

Even as interest in token securities declines, banks and securities firms are preparing to enter the market
Banks and securities firms with technology and investment companies with ideas join hands
“In the second half of the year, there will be more STO products created through industry collaboration”

This article has been translated into English through AI.

According to the financial investment industry on the 3rd, major domestic banks such as NH Nonghyup Bank, Shinhan Bank, and Woori Bank have entered into collaboration with piece investment companies to enter the token securities business in the first half of the year. Last month, NH Nonghyup Bank joined hands with Bankow. NH Nonghyup Bank and Stockkeeper have formed a strategic partnership in various sectors such as subscription management and joint marketing for the livestock investment contract securities currently in progress, and mutual cooperation in future STO new businesses.

In the first half of this year, the financial investment industry has been moving forward in various ways to establish the foundation for the token securities issuance (STO) business. In particular, collaboration between piece investment companies with creative ideas and the financial investment industry with IT and financial technology stood out. Although it is difficult to make a profit right away, the industry is busy preparing behind the scenes in anticipation of the market preemption effect.

In the same month, Shinhan Bank and Shinhan Investment & Securities entered the STO business with Sejong Telecom. Shinhan Bank has decided to provide various services in conjunction with Sejong Telecom’s real estate piece investment service ‘Bibrick’, including ▲new linkage of deposit/withdrawal accounts ▲deposit/withdrawal and balance inquiry ▲deposit management ▲participation in blockchain networks. It plans to cooperate with Shinhan Investment & Securities in areas such as token securities issuance and distribution support in the future.

In May, Woori Bank decided to enter the token securities business with Bycell Standard, the operator of the digital asset management platform ‘Peace’. Woori Bank and Bycell Standard are building an STO business system including ▲account management ▲affiliate marketing ▲participation in the council ▲innovative financial services ▲financial investment. The two companies are expected to introduce innovative token securities products through collaboration.

The securities industry also laid the foundation for STO by continuing to form consortiums and sign business agreements in the first half of this year. Mirae Asset Securities has agreed to collaborate with the Mina Blockchain Foundation, a global blockchain network, to link the Mina Protocol’s zero-knowledge proof technology to the token securities integrated platform. We will also conduct a proof of concept (PoC) that allows users to safely prove their assets on the blockchain.

Recently, as the STO legislation was delayed, some industries that had been preparing for the business for more than a year have expressed their discontent, but it seems that the business is currently being conducted in a state where the system is insufficient. For example, the token securities issuance (STO) activation project ‘Project Pulse’, in which Shinhan Investment & Securities, SK Securities, Blockchain Global, and Gwangjang Law Firm participated, is preparing a one-stop STO service and building references.

As various collaborations have decreased throughout the first half of the year, there are expectations in the market that banks and securities companies will introduce new products with each of the fragmented investment companies they have signed agreements with in the second half of the year. An STO industry insider said, “Among fragmented investment companies, there are many that do not have the blockchain technology necessary for token securities issuance,” and “Since securities companies and banks have already sufficiently prepared the relevant technology, we expect that various products will be released in the second half of the year by collaborating with fragmented investment companies with novel items and the financial investment industry with the technology.”

Meanwhile, the delay in the legalization of the token securities market has become inevitable due to the abolition of the Capital Market Act and the Electronic Securities Act amendments following the end of the 21st National Assembly term. With no specific plan for the pilot operation of the KRX new securities listing market, interest in the token securities market appears to be decreasing. In the securities industry, it is expected that as interest in the token securities market weakens in the first half of the year, an increase in the number of new securities issuances will play an important role in the second half.

In a report, Shim Soo-bin, a researcher at Kiwoom Securities, stated, “There should be more cases of new securities issuance,” but added, “Since it takes time to meet the conditions set by the authorities, we expect more cases to be issued in the second half of the year than in the first half.” He added, “Based on the cases of investment contract securities issuance in the first half of the year, we can form model cases, and as applications for innovative financial services change to regular operations, the predictability of the review schedule will also improve.”