South Korea’s securities exchange operator, the Korea Exchange (KRX), has launched a blockchain-powered platform wherein startup companies can trade equity shares on the open market.
The new feature will see its roll-out by implementing a blockchain platform called ‘Coinstack’, developed by Korean startup Blocko. With a focus on document and identity authentication, Coinstack is serviced both via cloud and on location, while supporting all protocols and applications build on the Bitcoin blockchain.
Blocko is also backed by a number of client references within Korea, with its platform already used by Korea’s JB Bank, KISA, Paygate and Lottecard, among others.
With the announcement, Blocko CEO Won-Beom Kim stated:
This is the first example of commercialization in which blockchain is applied to the Korean over-the-counter market.
Notably, the Coinstack development platform supports both Bitcoin blockchain-based contracts and Ethereum-based smart contracts.
With the latest update, the KRX’s blockchain-based trading services sees fruition. South Korea’s only securities exchange operator was revealed to be developing a blockchain platform to facilitate securities trading between buyers and sellers, directly, as early as March 2016.
Binging on Blockchain
Globally, the KRX is only the latest market operator to develop, test, or implement blockchain technology. The Australian Securities Exchange (ASX) is perhaps the most notable operator to foray into using blockchain technology, having revealed its intention to do so for well over a year. Used in the post-trade process, the distributed ledger solution – developed by New York-based startup Digital Asset – will run alongside the existing and traditional clearing and settlement system (CHESS).
A year ago in November, a number of European trading firms, exchanges and banks formed a working group to enable cheaper, faster and efficient ways to facilitate securities trades. Led by the London Stock Exchange, the group is also developing solutions, looking to harness blockchain technology for post-trade processes.
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