South Korea's Busan City to establish the country's first city-backed digital asset exchange.
Korea Investment & Securities has taken a major step in the blockchain industry by creating the first infrastructure for issuing token securities. Known as Korea Investment ST Friends, the consultative body developed a system to handle all processes for issuing and redeeming token securities.
The infrastructure runs on a cloud platform, allowing it to adapt as regulations evolve for this nascent asset class. The system integrates with existing securities trading infrastructure through proprietary technology developed by Korea Investment & Securities. Patent applications are in progress for innovations like smart contract dividends, distributed ledger deposits for instant trades, and personal information protections.
“[Translated] We expect this issuance infrastructure to be an important inflection point in the process of incorporating distributed ledger technology into institutional finance. We will strive to discover high-quality assets that reflect investor demand while establishing a stable system and protecting investors.” Choi Seo-ryong told Decenter.
In Busan, the city government is also building a blockchain mainnet to consolidate services using different networks onto one local platform. The goal is better interconnectivity and quality of private services by defining requirements for performance, security, and technical standards. A digital asset exchange corporation will launch in Busan this November after a public selection process. The chosen consortium will outline detailed plans at November's BWB 2023 event, with full operations targeted for 2024. At first, the exchange won't support virtual assets or token securities, focusing instead on blockchain trading of assets like precious metals.
Both the securities token issuance platform and Busan's blockchain mainnet exemplify Korea's leadership in institutional blockchain adoption. The developments are expected to improve investor protections and interconnectivity while creating a robust "Blockchain City" in Busan centered around its digital asset exchange. Meanwhile, the Busan Blockchain Alliance will announce 100 participating companies at BWB 2023. The city aims to encourage the overseas expansion of blockchain innovators proven in its regulation-free zone.
"[Translated] We will promote the Busan blockchain regulation-free special zone to a global innovation special zone and actively support the overseas expansion of innovative companies proven in Busan." said Busan City.