<p>Korea Investment and Securities (KIS) recently <a href="https://news.mt.co.kr/mtview.php?no&#61;2023092109270696023" rel="noopener noreferrer nofollow">announced</a> that it has become the first securities firm in South Korea to successfully establish an infrastructure for security token offerings.</p><h2 id="header-0">Real-world assets</h2><p>Security tokens are a new class of securities that are based on distributed ledger technology, allowing individuals to invest in real-world assets (RWAs) that can be tokenized. Such assets include real estate, ships, airplanes, and artworks.</p><p>In March, KIS initiated a security token consortium named “<a href="https://medium.com/&#64;coinness.gl/korean-investment-firm-partners-with-open-asset-to-build-security-token-system-55fbed2320bf" rel="noopener noreferrer nofollow">Korea Investment ST Friends</a>,” collaborating with Internet-only banks KakaoBank and Toss Bank, AI company Kakao Enterprise, and blockchain developer Open Asset. Since May, the consortium has been diligently working with the principal objective of constructing an infrastructure leveraging distributed ledgers. Consequently, the group has finalized the development and testing of a system that manages the entire trajectory of security token projects, from issuance to liquidation.</p><h2 id="header-1">Cloud system</h2><p>Specifically, KIS has built its infrastructure on a cloud network, bearing in mind that the regulatory framework for security tokens is still in development. This cloud system is capable of adapting to regulatory modifications and implementing improvement updates. Moreover, it utilizes an agile development approach to encourage rapid decision-making and productive collaborations, enhancing time efficiency.</p><h2 id="header-2">Compatibility with the traditional system</h2><p>The newly established security token infrastructure is also compatible with the traditional security trading system. Achieving this compatibility posed numerous technical challenges as the new system operates on distributed ledgers, whereas the existing one relies on centralized servers.</p><p>KIS is preparing to file patents for some of the technologies incorporated into the new system. These technologies encompass the payment of dividends through smart contracts, assurance of immediate settlements using deposits on distributed ledgers, and the management and safeguarding of personal information. By demonstrating the infrastructure’s capability and stability, the securities firm aims to gain a technological edge.</p><p>Choi Seo-ryong, the head of the platform division at KIS, expects the new infrastructure to mark a significant milestone as distributed ledger technology merges with traditional finance. He further mentioned that the securities company will discover blue-chip assets meeting investor needs while committing to the stable establishment of the regulatory framework and the protection of investors.</p><p>Moving forward, ST Friends will continue to enhance the stability and functionalities of the infrastructure through a series of field tests related to the entire process of security token products. Aiming to construct a security token ecosystem, the group will also concentrate on developing products by collaborating with various firms, including Korean content investment platform Funderful and real estate trading platform Valuemap.</p>

Korea Investment and Securities Completes the Construction of Security Token Infrastructure

Table of Contents

CoinNess Global

Other articles published on Sep 25, 2023

Will Crypto's Phoenix Rise From the Ashes? The Market's Hope for Rebirth

MNDI Stock Price: shares fell despite a 90% growth in net profits

BTC Is the Ultimate ESG Asset, Believes Sustainability Investor

Iustitia Coin (IUS) will be launched on Launchpad MEXC

What is $CHZ crypto and How to use it to Gain Profit?(2023 UPDATE)

Mojang, The Creator Of Minecraft, Asks Satlantis To Halt Bitcoin Rewards

Join our free newsletter for daily crypto updates!