Upbit Exchange’s Operator Dunamu Looks To Use Blockchain for OTC Securities Platform
Dunamu, the company which acts as the operator behind the popular crypto exchange Upbit, has recently affirmed that it would release a new app that could be used to trade unlisted securities in South Korea. This new service would be based on the blockchain technology.
The reports made by the Korea Herald affirm that the idea of using the blockchain comes to lower the costs of trading, as they are generally higher in over the counter (OTC) desks. These desks often need several manual processes for trades to be finished, so automating them can increase the efficiency of the platform.
By doing this, the operator believes that up to 4,000 securities can be traded every day using the platform. Samsung Securities is the company that was chosen to manage the trading activities.
The changes and the use of blockchain technology are going to be introduced next year. According to the company, all identity-based verifications and the post-processing of transactions will be done using the technology.
Dunamu’s Chief Strategy Officer Lim Ji-hoon affirmed that most transactions of unlisted assets have a lot of uncertainty related to them. They are either made via online communities or offline trades and sometimes the traders don’t know very well with who they are trading. Using the blockchain to manage the process will certainly improve this aspect of the situation.
This is not the first time in which a local company uses the blockchain for trading unlisted securities. Koscom and the KEB Hana Bank have recently affirmed that they would develop an OTC platform as well for this same goal.