South Korean tech giant Kakao Enterprise has announced its plans to expedite the establishment of a platform for issuing token securities based on blockchain technology. The company’s blockchain platform has already developed an electronic wallet and an application program interface based on Klaytn, and it is participating in the Central Bank Digital Currency project of the Bank of Korea.
Kakao Enterprise has a number of improved security features for account management, and the blockchain platform has several functions specific to financial institutions. Furthermore, the platform has been developed in Korea, which enables it to effectively respond to maintenance and service advancement.
Token securities are digitized securities using blockchain technology. Assets that were previously difficult to divide and trade, such as art, real estate, and music copyrights, can be digitized and traded like stocks.
Kakao Enterprise has recently announced that it will participate as a technology partner in ‘Korea Investment ST Friends’, a token securities consultative group formed by internet banks such as Kakao Bank and Toss Bank. Korea Investment ST Friends is the first case in which a financial institution has been formed to support the institutionalization of token securities.
Kakao Enterprise will be responsible for establishing an issuance infrastructure that can supply products suitable for token securities in the relevant token securities council. It will also support the design of securities token issuance and account management methods using blockchain technology, and will be in charge of technical review for the overall STO of Korea Investment & Securities.
The company also plans to expand its alliances with banks and card companies for the operation of the STO blockchain network. With these initiatives, Kakao Enterprise aims to build a faster, more stable, and more efficient platform so that various financial institutions can participate in the STO ecosystem centered on Korea Investment & Securities.
Kakao Enterprise has designed and successfully operated the entire process of stablecoin issuance-distribution-disposal for the Bank of Korea and 14 banks through the Bank of Korea CBDC simulation project. This experience will undoubtedly prove useful in the company’s efforts to establish a platform for issuing token securities.
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