Six Korean Fintech Firms Join Hands To Develop A Blockchain For OTC Securities Trading

Six fintech companies in South Korea have signed an agreement to create a blockchain-based platform that will help in trading of unlisted securities.

CoinDesk reports that the aim of the consortium is to create a blockchain platform that will reduce the costs of transactions, fasten them and make them secure. The platform will aim at making the transactions efficient as well as accessible to a wider range of investors in the country.

The six companies comprise of Korea Accelerator Association, KEB Hana Bank, Hana Financial Investment, Daejeon Techno Park, and Amicus Rex to build the ‘unlisted stock market platform'.

Through this agreement, the firms aims at providing specialized services based on the expertise of each institution with the aim of revitalizing the unlisted stock market that is said to be in the blind spot of the trading zone in Korea as the high costs in the stock value chain can prevent small firms not ready to list in the major exchanges from raising capital.

KEB Hana will handle escrow. Hana Financial Investments will provide support to unlisted companies. Amicus Lex will offer legal advice, while the accelerator association and the techno park will do the marketing and promotion for the platform.

The platform will be launched in the second half of this year by Koscom. Koscom is 76.6% owned by the Korea Exchange.

Koscom expects that small- and medium-sized ventures will reduce the burden of managing shareholders, investors will be less anxious when trading unlisted stocks, and the start-up funding market will be activated.

Koscom's blockchain technology was selected by the Financial Services Commission's Innovation Financial Services as a platform for shareholder list management and stock trading for startups and medium-sized companies in May. The Financial Services Commission said that Koscom's unlisted trading services met key requirements such as innovation and consumer convenience.

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