NongHyup Bank enhances partnership on stablecoin-based K-pop copyright investment

NH NongHyup Bank President Kang Tae-young, center, poses with a signed copy of the third memorandum of understanding with representatives from fintech security firm Aton and music copyright investment platform Musicow at Musicow headquaters in central Seoul, Monday. Courtesy of NH NongHyup Bank

NH NongHyup Bank is strengthening a three-way partnership with pioneering companies in blockchain-based payment systems and music copyright investment using blockchain technology.

The bank signed a third memorandum of understanding (MOU), Monday, with fintech security firm Aton and music copyright investment platform Musicow, it said Tuesday.

This agreement builds on their initial MOU from December 2021, focusing on developing an integrated business model that enables investors to purchase copyrights for k-pop and other Korean cultural content.

The model facilitates ownership through the integration of stablecoins and security token offerings (STO).

Stablecoin is a cryptocurrency designed to maintain a stable value by pegging it to fiat currencies.

They are issued and exchanged on blockchain networks, which securely and transparently record all digital asset transactions.

STO is a blockchain-based digital token that allows companies to raise capital by investing and owning rights in real-world assets, offering regulatory compliance and enhanced investor protection.

The project centers on a scenario where overseas K-pop fans use Korean won-pegged stablecoins to purchase K-pop copyright STOs.

Overall, the initiative aims to create demand for won-based stablecoins while also contributing to the fusion of finance with Korean cultural content.

“Our business model will mark a new turning point where Korean cultural content-based digital assets meet traditional finance,” NH NongHyup Bank President Kang Tae-young said. “We will take the lead in building a healthier and more stable digital asset ecosystem.”