NH Investment & Securities Launches Token Securities Consortium 'STO Vision Group'

[Asia Economy Reporter Hwang Yoon-joo] NH Investment & Securities announced on the 20th that it has formed the corporate consultative body "STO Vision Group" to establish a token securities ecosystem following the incorporation of "token securities issuance and distribution" into the Capital Markets Act.

The "STO Vision Group" includes NH Investment & Securities and eight leading companies from various sectors: fractional investment operators Together Art (artworks), Treasurer (luxury goods and collectibles), Greenery (ESG carbon credits); unlisted stock brokerage Seoul Trading Unlisted; blockchain technology companies Block Odyssey and Parameta (formerly ICONLOOP); and underlying asset physical appraiser Korea Ratings.

Token Securities (ST) are a type of digital securities issued in token form using blockchain technology, unlike existing electronic securities, and are issued based on non-standard assets such as real estate and artworks. Utilizing distributed ledger technology, they digitalize securities under the Capital Markets Act, representing a new form of securities following physical securities and electronic securities.

The "STO Vision Group," led by NH Investment & Securities, is a consultative body formed for practical discussions among companies such as fractional investment operators, unlisted stock brokers, blockchain technology firms, and underlying asset physical appraisers that need to change their current business models or see future business opportunities due to the revision of token securities regulations. The group plans to jointly explore comprehensive business opportunities to expand the use of token securities.

Additionally, the group aims to lead the establishment of a sound token securities ecosystem by protecting investors through resolving information asymmetry, establishing efficient token securities issuance and distribution systems, and creating a smooth collaboration foundation between financial institutions and innovative companies. The group plans to expand participating companies by sector as the system stabilizes and the market grows.

Jung Young-chae, CEO of NH Investment & Securities, stated, "The success of the token securities issuance and distribution market, which will be accepted within the institutional framework beyond traditional financial assets, depends on how trust from the market and customers is secured based on the new technology of distributed ledgers. Therefore, it is important for specialized companies in each sector, including financial institutions, to collaborate and build a stable and transparent business model." He added, "Through the operation of the STO Vision Group, we will strive to provide investors with more stable and diverse investment opportunities in underlying assets."