Value context and insight. lkm@koreatimes.co.kr
Korea's Bithumb to set up security token exchange in US
By Lee Kyung-min
By Lee Kyung-min
Korea's leading cryptocurrency exchange Bithumb has signed an agreement with U.S. fintech company SeriesOne to help the latter establish a security token exchange in the U.S. in 2019, the company said Thursday.
Bithumb, which seeks to purchase shares of SeriesOne, may become the first Korean firm to become listed on the NASDAQ market as crypto exchange, following the U.S. firm's plan to list the envisioned entity on the U.S. bourse in the latter half of 2019.
The strategic partnership is a major step forward for the Korean firm to bolster its presence in the world's largest economy with advanced financial services, amid continued struggles here over the past few years due mainly to little or nonexistent infrastructure for the unconventional method of investment.
Under the agreement, Bithumb will offer technical support for and invest in the U.S. firm and manage the exchange operation in general.
The U.S. firm chose the Korean firm among many other big-name, competent international crypto exchanges in Hong Kong and Singapore, according to a senior Bithumb official.
“I think the U.S. firm highly assessed our experience and expertise as the world's oldest crypto exchange since we were established in 2014. Our high-volume, fast-circulation trading system help guarantees stable transaction, qualities well received by our users,” the official said.
Mutual benefits are expected from the partnership with the U.S. fintech firm, which the U.S. Securities and Exchange Commission (SEC) approved for crowdfunding, he added.
“We are pleased to say the partnership will help us become a global crypto exchange, a recognition which will be all the more appreciated given it came from advanced financial systems. We view the deal bodes well for the blockchain-based asset tokenization, an investment in its nascent stage yet has substantial potential growth in the coming years.”
Based on the blockchain technology, assets including real estate, natural resources and media content are liquidated as tokens which often promise investment returns and value appreciation, similar to how traditional security works.
They can be traded on exchanges the same way stocks are.
Bithumb is the world's seventh largest exchange with daily trading volume of 443.5 billion won ($389 million) worth of virtual coins as of June 2018.