November 23, 2024

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NongHyup Bank's Head of Corporate Digital Platform Department Park Kwang-won (left) and Stockeeper CEO Ahn Jae-hyun pose for picture during the signing ceremony held Thursday. (NongHyup Bank)

NongHyup Bank has teamed up with local livestock fractional investment platform Bankcow to expand their business enabling customers to pool their funds to invest in livestock raised on Korean farms.

The bank announced on Thursday that it has entered a strategic business agreement with Stockeeper, the operator of Bankcow, to collaborate on securities token offerings (STOs).

"Through this business agreement, our goal is to enhance convenience and security for investors using our fractional investment Application Programming Interface, while also supporting the establishment of a sustainable funding structure for local cattle farmers," a representative from NongHyup Bank stated.

STOs are blockchain-based tokens that represent ownership in assets like stocks, bonds, real estate, artwork, and livestock. Anticipation for the growth of fractional investment has been mounting since local financial regulators unveiled plans last February to allow this innovative investment method through securities tokens.

Under the agreement, NongHyup Bank and Stockeeper will collaborate on various aspects, including managing subscription funds and marketing the nation's first livestock investment contract securities, with subscriptions opening on that day.

Utilizing the Application Programming Interface, which allows fintech companies to develop services directly, NongHyup Bank will oversee the subscription funds for the livestock investment securities product operated on the Bankcow platform.

NongHyup Bank is also developing a platform for tokenized securities.

Earlier on Wednesday, the bank announced it has been selected as the operator for a blockchain dissemination project led by the Korea Internet & Security Agency of the Ministry of Science and ICT. The lender will form a consortium with local blockchain platform developer BDGen to establish a platform where fractional investment operators can issue token securities, aiming for a launch within this year.

By Choi Ji-won (jwc@heraldcorp.com)