Koscom is joining forces with Hyundai Motor Securities to build a shared token securities (STO) platform. With the token securities regime set to take effect in February 2027, the two companies signed a business agreement, expanding the number of securities firms participating in Koscom’s shared platform “KoSTO” to 13.
Koscom announced on the 2nd that it signed a memorandum of understanding with Hyundai Motor Securities at its Seoul headquarters on the 1st for “shared token securities platform usage and business collaboration.” The two companies will pursue business and system integration for use of Koscom’s shared token securities platform and jointly identify underlying assets and products suitable for token securities. They will also specify issuance and account management procedures, while conducting joint testing that reflects legal and regulatory frameworks and investor protection requirements, along with information exchange to promote market activation.
With this agreement, KoSTO partner securities firms have expanded from 12 to 13. Koscom is building KoSTO, a token securities platform that multiple securities firms can use jointly. The company has completed token securities issuance infrastructure development with LG CNS and finished total volume management linkage testbed verification with the Korea Securities Depository.
Koscom is also broadening its business scope. The company is pursuing a proof-of-concept for token securities settlement using stablecoins, and is preparing tokenization plans not only for new types of securities such as investment contract securities and trust beneficiary certificates, but also for conventional securities including bonds.
Hyundai Motor Securities plans to establish the systems and operational framework needed for its token securities business based on KoSTO. The company aims to enter the token securities market by identifying competitive underlying assets and products, and through product structuring and investor service planning.
Yoon Chang-hyun, President of Koscom, said, “For the token securities market to gain real momentum, we need not only innovation in individual products but also highly reliable infrastructure that can stably support everything from issuance to rights management.” He added, “Through our collaboration with Hyundai Motor Securities, we will enhance the completeness of the shared platform and establish a foundation that allows financial investment firms to participate in the token securities business at reasonable costs.”
Bae Hyung-keun, CEO of Hyundai Motor Securities, said, “Token securities represent a new opportunity to connect diverse assets to regulated financial products and expand investor accessibility.” He added, “We will combine Koscom’s capital markets IT infrastructure capabilities with Hyundai Motor Securities’ product planning and financial expertise to deliver safe and differentiated token securities products and services.”
The token securities regime is scheduled to take effect in February 2027. Rather than each securities firm building its own system individually, using a shared platform can reduce initial investment costs and allow firms to launch operations on standardized infrastructure. In this regard, Koscom’s KoSTO is expected to lower market entry barriers for small and mid-sized securities firms. However, with detailed token securities legislation and supervisory regulations yet to be finalized, securing regulatory compliance for the platform before the regime takes effect remains a key challenge.