Ondo Finance announces APAC expansion

Experts Discuss Korean Security Token MarketSince the Korean financial regulator released regulatory guidelines on security tokens in February, many have anticipated that the introduction of security tokens would transform the concept of investment and give rise to new market strategies based on blockchain technology.©Pexels/PixabayIndustry professionals have expressed their opinions on the matter in interviews with media outlets.Token issuance and distributionPark Hyo-jin, vice president at Sejong Telecom, in a recent interview with Korean media outlet Digital Today, expressed his disappointment about the Korean government’s decision to separate token issuance from token distribution. Sejong Telecom is the developer and operator of the blockchain-based real estate fractional investment platform Bbric.According to Park, the capital market law separates token issuance from token distribution in order to prevent conflicts of interest, as interested parties may attempt to control financial products according to their own preferences. However, things are different with security tokens, Park believes. With the help of blockchain technology, a mainnet can issue and distribute tokens without intermediaries.Higher investment limitsPark emphasized the importance of increasing investment limits and cited the small size of the Korea New Exchange (KONEX), a stock exchange for small enterprises, as a reason for its lack of activity. He added that higher caps would result in positive ripple effects.Regarding real estate security tokens, Park doesn’t expect more profitable products, but sees that more investment choices will be available. He is particularly interested in investment contract securities. One such example is renting a piece of land to farmers to distribute harvest profits.Connection with virtual assetsThe security token market will face limitations if it’s not connected with its virtual asset counterpart. He mentioned the need for a digital asset law to create an ecosystem that links security tokens with virtual assets.Meanwhile, in an interview with Economic Review, Lee Kun-ho, former CEO of KB Kookmin Bank, showed a somewhat pessimistic view about the Korean security token market while admitting its potential.Various uncertaintiesIn his opinion, while real estate holds potential as a security token investment, government policies may introduce uncertainties. Likewise, the markets for music and artwork are also subject to unpredictability. Consequently, security token strategies in these areas could encounter limitations.Lee also sees that some of the services don’t necessitate blockchain technology. It is unlikely that any clear winners will emerge in the short term; therefore, it is vital for the industry to approach this issue with prudence, he added.

DigiFT Unveils First Fully Regulatory-Compliant US Treasury TokenDigiFT, a pioneering decentralized exchange (DEX) for digital assets with a Singapore-based project team, has made waves in the financial landscape with the official launch of the DigiFT US Treasury Token.Photo by Karolina Grabowska on PexelsTradFi and blockchain convergenceThe company announced the launch of the Treasury token, known as “DUST,” via a press release on Thursday. It’s the first-ever fully regulatory-compliant US Treasury token issued on a public blockchain, signaling a powerful convergence of traditional finance and blockchain technology.DUST has the potential to be a game-changer in the crypto space, offering accredited and institutional investors an unparalleled opportunity to seamlessly invest in US Treasuries through a secure and transparent on-chain channel. One of its standout features is its backing by a single US Treasury note with a specific maturity date, instilling confidence and reassurance in investors seeking stable and reliable assets.Regulatory complianceThere are other tokenized treasuries in existence already. However, DigiFT differentiates its product through adherence to rigorous regulatory standards, ensuring that the tokenization process aligns with established financial norms.Henry Zhang, CEO of DigiFT, expressed his enthusiasm about this groundbreaking achievement:“The launch of DigiFT US Treasury Token represents our commitment to bring the best of both decentralized finance (DeFi) and traditional yield to investors.”He emphasized that DUST not only bridges the gap between DeFi and real-world assets (RWAs) but also upholds the highest standards of regulatory compliance.DUST’s innovative structure offers investors the flexibility to participate using US dollars or US dollar stablecoin (USD Coin). The product is accessible to all, given that it facilitates a minimum investment amount of 1 USD or USDC. To enhance accessibility further still, DUST ensures same-day settlement for investments below USD 50,000, contingent on liquidity conditions.Zhang emphasized the transformative potential of DUST, stating: “We believe that tokenization of RWAs is poised to become the future of investing, and DUST will support the wider adoption of digital tokens with its compliant features.”Rapid progressThe issuance of DUST tokens is overseen by Red Cedar Digital Pte. Ltd., an affiliate of DigiFT, with a yield to maturity (YTM) of 5.40% as of August 3, 2023. DigiFT’s journey began in 2020 when it became the first and only DEX to be accepted into the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox.Since then, DigiFT’s list of achievements has grown exponentially. The platform successfully listed a tokenized corporate note from Diners Club (Singapore), which achieved full subscription at its initial offering.Additionally, a tokenized bond, backed by a Barclays 8% Perpetual Bond and custodied with a licensed global financial institution, reinforced DigiFT’s reputation for innovation. The platform’s regulatory-compliant access to Matrixdock’s Short-term Treasury Bill Token (STBT) further solidified its role in pioneering secure and transparent investment avenues.DigiFT’s product offering demonstrates that we are likely to see an ongoing blurring of the lines between blockchain-based innovation and traditional products in conventional finance over the next few years. As DigiFT continues to champion regulatory compliance and innovation, investors can anticipate even more transformative solutions that harmonize the best of both worlds.

Shinhan Card to launch NFT-based art-tech service next yearSouth Korean credit card company Shinhan Card is set to launch its art-tech service dubbed “Prestige Collection” next year, according to Park Young-woong of the Digital R&D team during his presentation at the seventh annual Shinhan Future’s Lab Demo Day event held in Seoul on Wednesday.Photo by Yi Liu on UnsplashDigitizing investments in artArt-tech — a portmanteau of art and money management technology — refers to an investment method that involves purchasing or owning artworks as assets and earning profits from their sales.“We are planning to launch our art-tech service next year, which will include exhibition recommendations, NFT ticketing and NFT art warranties to work in tandem with Shinhan Card’s payment services,” Park said. He also mentioned that it is currently undergoing legal evaluations.Making event access more efficientThe inception of this upcoming release started in September, when Shinhan carried out a collaborative proof of concept (PoC) mechanism with two member startups from the ninth installment of its Future’s Lab startup acceleration program, Art Map and SnapTag.Art Map is an art curation service put together by a team of database experts, software developers, artists, curators and designers that gathers metadata based on users’ preferences to recommend exhibitions and other art-related events for them to enjoy. On the other hand, SnapTag offers a variety of services based on its patented invisible watermark technology dubbed LAB Code. LAB Code is able to create an encrypted code by subtly converting image pixels of items like product packages, photos and illustrations and applying those files to printing or production processes without damaging or changing the original image.Last month, Art Map and SnapTag used their respective technologies to work with Shinhan Card to issue and verify blockchain-based NFT tickets for the Sneakers Unboxed special exhibition held at the Sejong Museum of Art. Shinhan was responsible for minting NFTs as tickets for exhibitions promoted on Art Map’s platform, which could be issued and stored on the My NFT section on Shinhan’s mobile app ShinhanpLay. Visitors would then be able to use SnapTag’s digital check-in service Keefo to enter the exhibition.This NFT ticketing system was proven to be a time-efficient and secure alternative to traditional ticketing procedures, which come with several inconveniences like long wait lines, delayed entry, illegal ticket resells and monopolization of customer data by major ticketing conglomerates. This is especially true for music performances by famous artists, where competition during ticket sales can become intense.“Our NFT ticketing service will evolve into an art-tech management service that focuses on art,” Park explained. “Prestige Collection will leverage Art Map’s art concierge platform, SnapTag’s LAB Code technology and Shinhan Card’s My NFT service.”