Shinhan Investment Corp. Begins Verification of Security Token Functionality

[Asia Economy Reporter Lee Jung-yoon] Shinhan Investment Corp. announced on the 5th that it will begin a Proof of Concept (PoC) to advance its Securities Token (ST) platform business.

Securities tokens are securities issued in token form using blockchain technology. They allow fractional ownership (fragmented investment) of various assets such as real estate, artworks, and stocks, thereby lowering the entry barriers for investors. Additionally, they have the advantages of lower issuance costs compared to traditional securities and lower risks than other digital assets as they are based on tangible value.

Shinhan Investment Corp. is working on building a platform that can tokenize any underlying asset. Through this PoC, it plans to internalize technologies related to securities tokens, including ▲ blockchain infrastructure construction ▲ digital wallet design ▲ token issuance, subscription, and distribution ▲ integration with existing financial systems. This initiative aims to proactively prepare blockchain infrastructure to strengthen digital competitiveness and contribute to establishing digital assets as sound financial assets.

The PoC will be conducted jointly by Shinhan Investment Corp.'s Blockchain Department and Lambda256. Lambda256 provides total blockchain solutions for companies’ Web3 digital transformation, including businesses related to blockchain platform Luniverse-based non-fungible tokens (NFTs), decentralized identity verification (DID), wallets, and blockchain consulting.

Furthermore, Shinhan Investment Corp. plans to accelerate its digital asset business. It will form a pre-task force (TF) for building the securities token platform, where experts from various fields such as products, custody, settlement, and legal affairs will benchmark related regulations and overseas cases and design internal systems.

Meanwhile, Shinhan Investment Corp. continues to recruit outstanding blockchain talent and raised its competitiveness in digital assets by launching a dedicated blockchain business organization, the Blockchain Department, in July.

Kim Jang-woo, Head of Shinhan Investment Corp.'s Digital Group, said, "We will build related infrastructure through securities token technology verification and the TF," adding, "We will continue to increase various experiments with promising companies to lead new markets based on blockchain such as securities tokens."