Delio Acquires OTC Brokerage License... Expanding STO OTC Trading

[Asia Economy Reporter Hyungsoo Park] Crypto bank Delio announced on the 15th that it plans to provide over-the-counter (OTC) trading services for security tokens (STO) in line with the institutionalization of the security token system.

Security Tokens are digitalized securities that securitize assets such as real estate, stocks, artworks, and livestock (Korean beef) into security tokens using blockchain (distributed ledger) technology. While similar to electronic securities in that securities are recorded electronically rather than physically, they differ in that they use decentralized blockchain technology.

According to the guidelines, security tokens are issued in the form of securities under the Electronic Securities Act system. The financial authorities have established an OTC brokerage business to enable OTC companies to enter the security token distribution business. Delio plans to obtain authorization as an ‘OTC brokerage business operator’ in line with market trends and support STO trading and related financial services based on distributed ledger technology in the OTC market.

Since 2019, Delio has been providing services such as custody, trading, and management of digital assets like Bitcoin (BTC), Ethereum (ETH), and NFTs. In 2021, it developed and completed a pilot operation of ‘STO Swap,’ a decentralized security token trading platform. It also operates a digital asset wallet called Vault. Judging that it is possible to apply existing services to security tokens, Delio is upgrading to a ‘Web 3.0 wallet’ capable of trading and custody of non-distributed ledger-based security tokens.

The cumulative performance of digital asset deposits and lending has reached 2.4 trillion KRW. Delio has secured a large number of users familiar with digital asset trading and can provide various financial services such as custody, deposit, lending, and management, as well as security token trading. The company expects to have strong competitiveness by obtaining authorization as an OTC brokerage business operator and providing security token services.

Delio can also perform the role of an STO issuer account management institution. One of Delio’s advantages is that it has secured legal stability for digital asset business by acquiring the ‘Virtual Asset Service Provider (VASP)’ license from financial authorities.

Jung Sang-ho, CEO of Delio, said, "In line with the announcement of the guidelines, we have formed an internal security token sandbox task force (TF) and started preparing services linked to STO," adding, "We plan to launch related services through the financial regulatory sandbox and officially obtain OTC brokerage business authorization after legal amendments."