UpBit eyeing blockchain OTC securities market

The famed cryptocurrency exchange UpBit is now eyeing blockchain OTC securities market through its operator Dunamu, local media reported.

Within next year; right after it’s unveiled, this blockchain technology will aid in the authentication of identities as well as the procedure of the business.

At the moment, the updating of some shareholder listings are carried out by hand. This system aims to initiate a self-operating system in place.

Need for blockchain OTC securities application

Dunamu announced the release of a new application to compete with the over-the-counter (OTC)  market this month (October) for exchanging over-the-counter securities with the motif to make use of the blockchain technology.

The project aims to trade at lower costs, which are generally higher for the unlisted stock, as reported by the Korea Herland at the beginning of this week. It further plans on improving the security of transactions as well as user information between traders.

With Samsung Securities overlooking the exchange process, it is indicative that over four thousand (4000) securities could potentially be exchanged on this blockchain OTC securities platform.

Lim Ji-Hoon, the strategy officer for the company indicated that there was a lot of uncertainty surrounding the identities of involved personnel when it came to transactions; most of them are carried out online through bulletins or in-person trading.

OTC trading on a system of blockchain is already becoming popularised in Korea. A group, in early August, including Koscom and Hana Bank stated that they were planning on creating an unlisted securities platform and vowed to have it fully operational by the end of 2019.