[Special Stock] ITCEN, the 'largest' raw material STO platform with 1 million users... Leading 13.3t gold trading

ITCEN is showing strong performance. Securities firms' analysis that the value of the token securities (STO) business will grow seems to be influencing the stock price.

As of 9:16 AM on the 6th, ITCEN was trading at 5,420 KRW, up 340 KRW (6.69%) compared to the previous trading day.

KB Securities analyzed that ITCEN is expected to highlight the value of Korea's first physical metal-backed token securities (STO) business.

ITCEN, as the operator of the STO platform for Hana Bank and Hana Securities, has applied for designation as an STO regulatory sandbox based on physical trust beneficiary certificates such as gold and raw materials. Its subsidiary, 'Sengold,' is a digital platform service that allows fractional investment in expensive precious metals in units of 1/100g. Since its launch in March 2020, it has continued to grow, recording 1 million cumulative users and a cumulative transaction amount of 800 billion KRW.

Researcher Sang-guk Lim of KB Securities stated, “ITCEN is expected to rapidly expand its related STO business capabilities by issuing non-monetary movable property trust beneficiary certificates based on physical assets such as gold, silver, palladium, copper, and nickel, leveraging its own blockchain technology.”

He added, “As a current digital platform operator for gold trading and distribution, based on excellent references, if the domestic STO business materializes, ITCEN’s growth value as Korea’s first gold and raw materials-related STO platform operator will be highlighted.”

Last month, the ITCEN Group also participated in the public offering for the establishment and operation of the Busan Digital Asset Exchange. ITCEN operates a physical gold trading platform through the Korea Gold Exchange. As of the cumulative total for the third quarter of this year, about 13.3 tons of gold have been traded and distributed.

Expectations are also rising for the new growth engines in artificial intelligence (AI) and cloud sectors. He explained, “Subsidiaries Comtec System and Ssangyong Information & Communications are expected to contribute to external growth and gradual profitability improvement through strengthening AI and cloud-centered businesses and expanding synergies among affiliates.”