Fractional Investment Exchange: Korea Exchange and Nextrade Likely to Be Selected

It has been reported that the consortiums formed by Korea Exchange and Nextrade have effectively been selected as operators of the over-the-counter (OTC) marketplace for token securities (STO) distribution in Korea.

According to the financial sector on January 7, the Securities and Futures Commission under the Financial Services Commission reviewed the agenda item for the "Preliminary Approval Application for Financial Investment Business for the OTC Marketplace for Fractional Investment" on this day. At the meeting, the commission is said to have selected two consortiums: the Korea Exchange-Koscom Consortium (KDX) and the Nextrade-Musicow Consortium (NXT Consortium). The Lucentblock Consortium, which also applied for preliminary approval, was eliminated.

Typically, passing the Securities and Futures Commission is considered to be the most significant hurdle in the approval process. If the Financial Services Commission gives its final decision on January 14, preliminary approval is expected to be confirmed. The Financial Services Commission has previously announced its intention to approve up to two companies. However, the commission stated, "No final decisions have been made regarding the approval of the OTC marketplace for fractional investment."