Unlisted stock trading services using blockchain technology are in full swing. Based on the government’s pilot project and a financial regulation sandbox, the financial sector including KOSCOM and blockchain companies is launching services one after another. Many expert say that that blockchains where data cannot be forged or altered increase the efficiency of unlisted stock trading, which has been achieved through Internet message boards and PC documents.
They also forecast that the increase in safety of unlisted stock trading through blockchains may lead to the promotion of investment in startups.
While KOSCOM launched the blockchain-based unlisted stock market platform ‘Be My Unicorn’ in earnest, Dunamu and PSX will also launch unlisted stock trading using blockchains in September and February of 2021, respectively, industry sources said on May 10.
KOSCOM joined the Initial DID Alliance, a blockchain-based ID and authentication network, through the Private Sector-led National Blockchain Project’ promoted by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA) of 2019, and received a special license on investment brokerage from the Financial Services Commission in May of the same year.
After about one year, KOSCOM introduced the Be My Unicorn platform based on blockchains. The new platform focuses on reducing the burdens of managing shareholder lists of small and medium-sized companies and venture startups, and on increasing the trading efficiency of investors. In addition, when the ‘Initial,’ a blockchain-based mobile electronic authentication (decentralized identification (DID) service, is released in May, it will be possible to use simple logins and electronic contracts in conjunction with the Be My Unicorn platform.
“Through the Be My Unicorn platform, investors will be able to trade the unlisted stocks from professional investors such as accelerators, and stocks from venture company employees,” KOSCOM said.
PSX and Dunamu are also preparing unlisted stock trade services with Shinhan Financial Investment and Samsung Securities, respectively, through the financial regulation sandbox. At PSX now in pilot operation, stocks of famous unlisted startups such as Market Curly, Musinsa, Vuno, Krafton (Bluehole), Ridi Books, Yanolja, and Blocko are traded. PSX receives unlisted startups’ stocks from angel investors, accelerators, and stock options holders, and Shinhan Financial Investment supports PSX with user account openings and the trading system for stable services of PSX.
Dunamu, the operator of Upbeat, a virtual asset exchange, also launches a pilot service of a blockchain-based shareholder list management system in September, expanding the Securities Plus Unlisted Service launched in November 2019 with Samsung Securities. It plans to automate the entire process of verifying the identity of sellers and buyers and renaming stock transfers based on distributed ledger technology.