The operator of the Upbit cryptocurrency exchange, Dunamu, is introducing a new app this month in South Korea for trading unlisted securities with an arrangement to use blockchain in the first half of next year.
As indicated by a Korea Herald report on Monday, the initiative is expected to lower trading fees, which will, in general, be high for over-the-counter (OTC) stocks right now with a series of manual procedures, and to improve security and address data imbalances among buyers and sellers.
The report included it will be conceivable to exchange up to 4,000 securities on the platform with Samsung Securities dealing with the trading procedure.
When presented next year, the blockchain segment will take into consideration the confirmation of identities and the handling of the transactions. Specifically, it will automate the updating of specific shareholder lists in a distributed manner that right now must be maintained manually.
“Most unlisted stock transactions in South Korea are made via online community bulletin boards and offline trades, leading to uncertainties surrounding the parties’ identities and the information needed in the investment,” said Lim Ji-hoon, chief strategy officer of Dunamu.
In Korea, blockchain for the trading of unlisted securities is now getting attention. Toward the beginning of August, a group including Koscom – the IT arm of the Korea Exchange – and the KEB Hana Bank stated they would build up an OTC platform and vowed to have it ready for action before the year is over.