South Korean Kakao will store private securities on the blockchain in NFT format
Local legislation does not prohibit foreign investors from conducting transactions with such securities.
The developers of the South Korean Internet giant Kakao have offered customers a functionality with which securities can be stored on the company's blockchain in the NFT format. CoinDesk writes about it.
To develop the necessary technical functionality, the Kakao team involved its division - Ground X. One of the well-known Ground X products is the Klaytn corporate blockchain.
Kakao's new product allows private securities to be stored on Klaytn and authenticated.
To work with shares converted to NFT format, investors will need a Klip wallet built into the KakaoTalk messenger.
Kakao's offer is for start-up stocks that company representatives offer investors to buy before the IPO. Due to the fact that such securities are not listed on exchanges, their owners are forced to work on the over-the-counter (OTC) market. The transfer of shares to the digital NFT format, according to representatives of the initiative, will simplify the work with assets.
In 2020, the capitalization of the OTC securities market in South Korea reached $ 1.1 trillion. The indicator turned out to be a record one. The stable growth of the South Korean OTC securities market since its launch in 2014 allows us to predict the positive dynamics of its development. It is noteworthy that South Korean law allows foreigners to buy shares converted to NFT format.