Hana Securities Prepares for STO Platform Launch in 2024

Hana Securities, a South Korean securities firm, has made preparations to introduce a platform for security token offerings (STOs) during the latter part of 2024.

Itcen and INF Consulting are collaborating with the securities firm to provide technical support for the proposed STO platform.

Itcen and INF Consulting have a history of “conceptualizing and constructing platforms” utilizing blockchain technology, according to the official announcement.

The platform, according to Hana Securities, will provide comprehensive capabilities, such as the ability to oversee STOs from issuance to circulation.

With a complete launch of the STO platform anticipated for the latter part of 2024, the company is actively supporting the accumulation of firms on a waiting list to ensure a successful launch.

The firm claims that its most recent partnership, which follows several significant alliances with companies such as Print Bakery, Danal Entertainment, and Oasis Business, will bring it one step closer to achieving its STO objectives.

Hana Securities joined the Next Finance Initiative (NFI) consortium in September, affiliated with Mirae Asset Securities and SK Telecom.

STOs are digital representations of standard financial instruments such as intellectual property, debt, bonds, and stocks.

STO activity in South Korea has reached all-time highs in recent months, with several entities experimenting with the sector.

Three of the largest South Korean banks—Industrial Bank of Korea, Woori Bank, and Shinhan Bank—became members of an STO consortium that NongHyup Bank initiated to investigate the offering.

The emergence of STO consortiums in South Korea, according to analysts, may provide solutions to the persistent problem of fragmentation, lower expenses, and promote interoperability.

In response to the increasing attention, the Financial Services Commission (FSC) of South Korea declared that STOs will be governed by established capital market regulations.

“As defined by the Capital Markets Act, the correlation between the notion of securities and how they are issued is analogous to that of sustenance.”

“The food remains unchanged regardless of the container in which it is served,” the FSC stated. “In other words, the nature of securities remains constant despite alterations in the issuance method.”

The notion of STOs is progressively amassing acceptance beyond South Korea, primarily among institutional investors. In contrast to the preference of South Korean consortiums for public blockchains, other jurisdictions prioritize tokenizing conventional securities and private ledgers.

Cathay Securities was granted an STO license by the Financial Supervisory Commission (FSC) of Taiwan in early November, thereby enabling the company to commence the distribution of its offering to investors.

Cathay Securities must comply with various regulations, notwithstanding its license, which encompasses a yearly fundraising cap of $4 million and two STOs.

Cathay Securities stated, “The authorization to launch STO at this time is intended to provide investors with a greater variety of investment alternatives while also serving as a fundraising channel for non-listed and emerging companies as well as new innovative development models.”