Galaxia Moneytree Designated as Innovative Financial Service for Aircraft Engine Trust Beneficiary Securities

Galaxia Moneytree announced on the 2nd that its aviation finance-based trust beneficiary certificates, the first of their kind in Korea, have been newly designated as an Innovative Financial Service (Financial Regulatory Sandbox) by the Financial Services Commission.

This designation as an Innovative Financial Service is the first case since the Financial Services Commission announced the token-linked product guidelines last year. The "aircraft engine trust beneficiary certificates" structure involves placing the physical aircraft engines in trust, issuing trust beneficiary certificates through electronic registration, and distributing them to investors via a platform.

In September last year, Galaxia Moneytree formed a consortium with Shinhan Investment Corp., Eugene Investment & Securities, VMIC, and Cirium to issue aviation finance-based trust beneficiary certificates. The consortium established a business model to issue trust beneficiary certificates for aircraft engines averaging around 10 billion KRW and earn issuance fees.

Galaxia Moneytree is responsible for overall consortium management and the development of the aviation finance trust beneficiary certificate issuance platform. Shinhan Investment Corp. and Eugene Investment & Securities support the development of the distribution platform, operations, and trust account management. VMIC, a domestic aviation asset management company, supports service and asset management for aircraft engines, while Cirium, an aviation data analytics firm, provides asset valuation of aircraft engines and aviation data.

A representative from Galaxia Moneytree stated, “With the designation of these aviation finance-based trust beneficiary certificates as an Innovative Financial Service, the burden on airlines will be reduced through a shared-use lease service for expensive aircraft engines and parts.” He added, “Especially through the token-linked fundraising method, general investors can easily invest with small amounts.”