Koscom is collaborating with Hyundai Motor Securities to establish a joint platform for token securities ahead of the implementation of the token securities system in February next year.
Koscom announced on September 2 that it has signed a memorandum of understanding (MOU) with Hyundai Motor Securities for the use of the joint platform and business cooperation. The agreement was signed the previous day at Koscom's headquarters in Yeouido, Seoul.
Under this agreement, the two companies will work together on system integration for the joint platform, as well as on identifying underlying assets and products for token securities, and refining the processes for issuance and account management.
They will also conduct joint testing that reflects legal and regulatory requirements and investor protection standards, and will exchange information to promote the token securities market.
Koscom is preparing a joint platform for token securities called 'KoSTO,' which can be used by multiple securities firms. It has completed the infrastructure for token securities issuance in collaboration with LG CNS and has also finished a testbed for total management linkage with the Korea Securities Depository.
With Hyundai Motor Securities joining, the number of securities firms collaborating on Koscom's token securities platform has increased to 13.
Koscom is also pursuing a proof of concept (PoC) for token securities settlement using stablecoins. Plans are underway to tokenize new types of securities, such as investment contract securities and trust beneficiary securities, as well as existing structured securities like bonds.
Hyundai Motor Securities plans to utilize KoSTO to establish the necessary systems and operational foundations for its token securities business and to identify competitive underlying assets and products. The firm aims to proactively respond to the token securities market based on its unique capabilities in product structuring and investor service planning.
Yoon Chang-hyun, CEO of Koscom, stated, "For the token securities market to be fully activated, it requires not only innovation in individual products but also a reliable infrastructure that can support everything from issuance to rights management. Through our collaboration with Hyundai Motor Securities, we will enhance the completeness of the joint platform and establish a foundation for financial investment companies to participate in the token securities business at reasonable costs."
Baek Hyung-geun, CEO of Hyundai Motor Securities, remarked, "Token securities present a new opportunity to connect various assets to regulated financial products and expand investor accessibility. By combining Koscom's capital market IT infrastructure capabilities with Hyundai Motor Securities' product planning and financial expertise, we will introduce safe and differentiated token securities products and services."
* This article has been translated by AI.
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