Chung-Ang University to Issue Blockchain-Based Certificates

OCBC Bank Partners With ADDX to Launch Tokenized NoteSingapore’s longest established bank, OCBC Bank, has partnered with blockchain-centric private market investment platform, ADDX, to launch a tokenized equity-linked structured note.Tokenized equity-based productsThe product is significant in that it represents the first tokenized equity-linked structured note that the cornerstone bank has offered. That in itself gives an indication of how conventional finance will mesh with tokenized products as both the conventional finance system and digital assets space evolve over the coming years.An equity-linked note is a debt instrument, normally in the form of a bond. It’s distinct from a standard fixed income security as it’s a market-linked structured product. That means that it performs in sync with a particular equity stock, a basket of equity stocks or with an equity index.ADDX CEO Oi-Yee Choo elaborated on the product offering: “Structured products are designed to provide investors with unique risk and return characteristics that may not be available through traditional investments, and are an attractive option for investors weighing yield-generating options in the current economic climate.”Photo by Shubham Dhage on UnsplashLeveraging tokenizationBy leveraging tokenization, the ADDX platform realizes cost savings, cutting out counterparties from the process. Additionally, tokenization allows fractionalization of assets and financial products, making a product offering accessible to all market participants. In this particular instance, the OCDC/ADDX product is restricted solely to accredited investors.Singapore-based ADDX currently lists in excess of seventy tokenized products on its platform right now. These range from commercial paper, bonds, real estate and equities or equity-based products.On those products it has collaborated with global alternative investment product specialists Investcorp and Hamilton Lane, telecommunications giant Singtel and securities broker CGS-CIMB Securities. Additionally, it has partnered with UOB, Singapore’s third largest bank, and a number of entities owned by state-owned Singaporean investing giant, Temasek.While the conventional finance world has been skeptical of digital assets and the overarching cryptocurrency and blockchain space has had its fair share of setbacks interlaced within its progression, forward-looking TradFi players are conscious of not getting left behind. That’s reflected in the comments of OCBC Bank’s Head of Global Treasury, Kenneth Lai, in relation to the ADDX partnership:”While we already have a comprehensive stable of treasury products which includes sustainability-linked interest rate swaps, cross currency swaps, structured deposits and green bonds, it is important that we continue to innovate and find new channels for our products. We are therefore pleased to be the first Singapore bank to offer an equity-linked structured note in tokenized form on ADDX. It is the first innovation resulting from a longer-term partnership with ADDX, and we are hopeful that it will lead to more diverse product offerings that are relevant and appealing to the global accredited investor base of ADDX.”Further comments by Choo suggest that the two firms have plans to broaden the partnership to encompass a greater range of products. She referred to more structured products being in the pipeline as the duo seek to exploit their combined expertise and capabilities.As it stands today, just $0.3 trillion in global assets are currently tokenized. That number is expected to grow to $16 trillion within seven years.

SK Geo Centric Launches Korea’s First Blockchain-Based Plastic Recycling PlatformSK Geo Centric, a chemical affiliate of South Korea’s second largest conglomerate SK Group, has announced today the launch of the country’s first blockchain-based plastic recycling platform. This endeavor aims to ensure the safe and widespread use of recycled plastics by customers.Photo by mali maeder on PexelsAddressing environmental pollutionPlastic recycling has emerged as a promising solution to address environmental pollution. However, concerns have been raised about the source and safety of collected plastic waste. Recognizing the demand from customer manufacturers who utilize recycled plastic, SK Geo Centric developed the new platform to provide more comprehensive information than what is required by the International Sustainability and Carbon Certification (ISCC) PLUS, which the company previously obtained.The ISCC PLUS certification is a voluntary program designed for circular products, including chemicals and plastics, derived from using renewable energy sources. It is administered by ISCC, an independent multi-stakeholder initiative based in Germany. While adhering to the same certification standards as ISCC EU, ISCC PLUS allows for customization to meet the requirements of other markets.Blockchain techSK Geo Centric’s innovative platform utilizes blockchain technology to record and store every step of the plastic recycling process, ensuring transparency and traceability. Intermediate producers and end-users can access the complete history of recycled plastic by scanning the QR code on the product. Information such as the types, sources, and proportions of plastic waste used in a product, as well as the quality of materials, will be readily available.The history records will be stored in the form of non-fungible tokens (NFTs), providing proof of authenticity for the product. This information can be shared via email among the relevant parties. Manufacturers can now demonstrate to their customers the specific recycled materials used in their products.Market growth and efficient distributionSK Geo Centric believes that the systematic management of history records will enhance the credibility of the plastic recycling market, leading to its growth. Transparent records of high-quality and safe plastic waste will facilitate trading. Furthermore, real-time information on the recycled plastic market will enable efficient distribution within the industry.Recycling facilityIn addition to the platform, SK Geo Centric plans to establish the Advanced Recycle Cluster in Ulsan, a city in southern Korea, later this year. The presence of this plastic recycling facility is expected to expand the scale of the recycling market and attract more participants.Na Kyung-soo, CEO of SK Geo Centric, highlighted the importance of trust among market participants in fostering the development of the recycled plastic sector. The company is committed to improving its platform to earn the trust of its customers.

KITC Cooperates with Buysell Standards to Develop Security Token Products in KoreaKorea Investment and Securities Co. (KITC), a leading securities company in South Korea, has partnered with Buysell Standards, the operator of the fractional investment platform PIECE, to jointly develop security token services.Photo by Tierra Mallorca on UnsplashNon-traditional securitiesAccording to a report from local news outlet News1, the two entities have agreed to collaborate comprehensively on security token products. This includes offering non-traditional securities such as investment contracts and non-monetary trust contracts, establishing infrastructure for launching investment products on token issuance platforms, and setting up processes for trust agreements.Buysell Standards has been expanding its range of fractional investment products from art and luxury goods to ships. The company has successfully completed various blockchain-related projects, including the development of its own blockchain mainnet for security token issuance.KITC’s security token effortsIn March, KITC established ST Friends, an alliance established in cooperation with Internet-only banks Kakao Bank and Toss Bank. The alliance has been actively working towards commercializing security tokens by signing business agreements with fractional investment firms like content investment platform Funderful and proptech platform Valuemap Corp. Proptech, the abbreviation of property technology, refers to the use of information technology to facilitate real estate buying, selling, and management.KITC believes that the partnership with Buysell Standards will accelerate the process of providing innovative financial products. Choi Seo-ryong, the head of the platform division at KITC, expressed excitement about collaborating with Buysell Standards, renowned for its expertise in digitizing real-world assets (RWAs). Choi emphasized KITC’s commitment to converting various content that we encounter in our daily lives into security tokens.Last month, KITC inked a memorandum of understanding (MOU) with Open Asset, a blockchain fintech company based in Seoul, to develop a distributed ledger system for ST Friends.Similarly, Buysell Standards has also been proactive in forming partnerships for security token projects. In February and April, the fractional investment platform operator entered into collaborations with Shinhan Securities and KB Securities, respectively.