Nine out of 10 major securities companies are pursuing related projects ahead of the implementation ..

Nine out of 10 major securities companies are pursuing related projects ahead of the implementation of the token securities (STO) system in February next year. As the STO market, which was centered on art and real estate sculpture investment in the early days, has expanded to tokenize traditional financial assets such as corporate bonds, funds, and stocks, securities companies are also competing to build platforms and preempt business models.

According to the “Status of Stock Industry STO Preparation” data submitted by Park Sang-hyuk’s office of the Democratic Party of Korea from the Korea Financial Investment Association on the 21st, five out of 10 major securities firms were actively pursuing projects and four were. Only one place is considering whether to pursue it or not. In fact, most major securities companies are preparing to enter the STO market.

Strategies for each securities company are being differentiated. KB Securities is considering tokenizing traditional financial assets such as corporate bonds, funds, and trust beneficiary securities, while Mirae Asset Securities is preparing an integrated model in which stocks, bonds, and digital assets are traded on one platform. Korea Investment & Securities is considering establishing its own token securities issuance infrastructure and expanding its digital asset business.

Businesses targeting the fragmentation investment market are also active. Hana Securities has conducted the first public offering of Korean won investment contract securities in Korea, and Hanwha Investment & Securities is considering an STO project linking the Nextrate (NXT) consortium with the digital asset business. DB Securities is focusing on the role of an underwriter in charge of issuing and structural design and is promoting carbon reduction projects and K-content intellectual property (IP)-based STO projects.

The platform construction method was also mixed. KB, Mirae Asset, Hana, and Korea Investments are putting weight on building their own platforms, while DB, Shinhan, and Kiwoom are using strategies to utilize Coscom’s joint infrastructure or participate in the consortium. Analysts say that competition for platform leadership is in full swing even before the market opens.

The financial investment industry has asked the financial authorities to reorganize the system to enable tokenization of standardized securities such as corporate bonds, stocks, and money market funds (MMF). It also proposed the establishment of an on-chain securities settlement environment using stablecoins. The industry believes that STO will develop beyond simple piece investment to digitize the entire process of issuance, distribution, and payment.

An industry official said, “Differentiation strategies that take advantage of each securities company’s strengths, such as building its own platform and utilizing joint infrastructure, will be a key variable that will determine the success or failure of the initial market.”