Upbit operator to launch OTC securities trading
Dunamu, the operator of the upbit crypto exchange, is releasing a new application for over-the-counter securities trading in South Korea this month, planning to use the blockchain.
According to the Korea Herald article, "the project aims to reduce trading costs, which are currently high for over-the-counter (OTC) stock trading, through a series of manual processes, and to improve security and eliminate information imbalances between buyers and sellers."
The article adds that up to 4 ' 000 securities will be traded on the platform, and Samsung Securities will manage the trading process.
Blockchain, which will appear next year, will allow to verify identities and process transactions. In particular, it will automate the updating of certain shareholder lists in a distributed way, which is currently done manually. Dunamu's Director of strategic Affairs, lim JI-Hoon, believes:
Most stock transactions that are not registered in South Korea are made through online forums and offline trading, leading to uncertainty about the identity of the parties and the information required for the investment.
Blockchain for trading Unlisted securities is already attracting attention in Korea. In early August, a group including Koscom (the IT arm of Korea Exchange) and KEB Hana Bank said they would develop an over-the-counter platform and promised it would be ready by the end of the year.