Eight companies, one consultative body - and a plan for how security tokens actually get issued and traded
PARAMETA is joining the STO Vision Group, the security token consultative body launched today, as a blockchain technology company.
[Reference] Go to related coverage ▼
- NH Investment & Securities launches the STO Vision Group, a security token consultative body
- NH Investment & Securities launches the STO Vision Group, a security token consultative body, by reporter Eunji Cha, Securities
- www.hankyung.com
The STO Vision Group that PARAMETA is joining is an inter-company consultative body formed to build a security token ecosystem following the incorporation of security token issuance and distribution into capital markets law. Eight leading companies from a range of related fields are taking part, PARAMETA and NH Investment & Securities among them.
Participants in the STO Vision Group security token consultative body
Securities firm — NH Investment & Securities
Fractional investment operators — Together Art (artwork), Treasurer (luxury goods and collectibles), GREENERY (ESG carbon credits)
Unlisted stock brokerage — Seoul Exchange
Blockchain technology companies — Block Odyssey, PARAMETA (formerly ICONLOOP)
Underlying asset appraiser — Korea Ratings
A security token (STO) is a form of digital security that, unlike existing electronic securities, is issued in token form using blockchain technology. It is issued on the basis of non-standard assets such as real estate and artwork, and it digitalizes a capital-markets-law security using blockchain's distributed ledger technology — making it a new form of security following physical certificates and electronic securities.
The STO Vision Group is a consultative body formed around NH Investment & Securities for practical discussion among companies whose current business models need to change under the new security token rules, or for which future business opportunities exist — blockchain technology companies, fractional investment operators, an unlisted stock brokerage, and an underlying asset appraiser. Together they plan to pursue broad business opportunities for expanding the use of security tokens.
The group also intends to lead the building of a sound security token ecosystem — protecting investors by resolving information asymmetry, establishing efficient security token issuance and distribution systems, and laying the groundwork for smooth cooperation between financial institutions and innovative companies. As the rules bed in and the market expands, it will add participants in each domain.
Whether the issuance and distribution market for security tokens — which is set to be brought inside the regulatory perimeter, beyond traditional financial assets — succeeds or fails depends on how it secures the trust of the market and of customers on top of a new technical foundation, the distributed ledger. That makes it important for specialist companies in each domain, financial institutions included, to put their heads together and build a stable, transparent business model. Through running the STO Vision Group, we will work to give investors more stable access to investment opportunities across a wide range of underlying assets.
Youngchae Jeong, president of NH Investment & Securities
PARAMETA recently signed an agreement with PSX, operator of the unlisted stock trading platform Seoul Exchange, on joint development of a security token platform and business cooperation, setting out its ambition to lead the formation of the security token ecosystem.
At the heart of that agreement is joint research into the infrastructure and technical elements — and development of the service model — needed to connect security tokens issued using PARAMETA's technology to Seoul Exchange as a distribution platform. To that end, PARAMETA will handle the overall technical development required so that a range of security tokens can be traded safely through the distribution platform PSX operates, on the basis of its own PARAMETA S (STO as a Service), which provides the full range of security token technology via APIs.
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PARAMETA S is part of PARAMETA Service, launched on the 9th of this month to support a straightforward Web3 transformation. It makes fractional management of real-world assets possible using tokens, supporting investment, fractional ownership, and the management that goes with them. Businesses preparing this kind of offering can apply STOs in the easiest and fastest way through PARAMETA S — via API integration, with no infrastructure build of their own, and with dramatic savings in time and cost.
With the financial authorities' security token guidelines removing much of the industry's uncertainty, interest in security token issuance and distribution is rising sharply. Backed by proven technology and services, we will do our best to apply STOs superbly in business and to contribute to forming and expanding a healthy security token ecosystem.
Web3 Enabler, PARAMETA