Major brokerages have successively invested in virtual asset exchanges this year, prompting analysis that their moves go beyond entering the coin market to prepare for changes in the stock and bond markets. This is because the scope of blockchain technology application is expanding from virtual assets to the issuance and trading of stocks and bonds, with plans even being pursued to settle transaction amounts using stablecoins. Analysts say brokerages are proactively securing the customers, blockchain technology, and digital asset business experience held by virtual asset exchanges to prepare for a new securities trading environment.
Brokerages Invest in Coin Exchanges… Strategy to Secure Customers, Technology, and Experience
According to the financial investment industry on the 16th, Samsung Securities acquired a 4% stake in Duamoo, the operator of Upbit, for 612.8 billion won in May together with Samsung SDS and Samsung Card. Samsung Securities holds 2%, while Samsung SDS and Samsung Card each hold 1%. Samsung Securities stated that the purpose of the investment is to "strengthen competitiveness in digital asset business and secure synergies." The company plans to cooperate with Duamoo in areas such as the issuance and distribution of tokenized securities and virtual asset services.
Korea Investment & Securities signed a contract to acquire a 20% stake in Coinone in the same month, rising to become one of its top three shareholders. Korea Investment & Securities announced that it would combine its existing financial services with Coinone's blockchain technology in line with the institutionalization of digital assets such as tokenized securities and stablecoins.
Mirae Asset Group acquired Cobit through Mirae Asset Consulting, a non-financial affiliate. Mirae Asset Consulting initially planned to acquire a 92.06% stake in Cobit, then purchased additional shares to raise its stake to 97.15%. It is reported that several financial companies, including Kiwoom Securities, are also discussing investment and cooperation plans with Bithumb.
Currently, virtual asset exchanges cannot directly handle stocks or bonds. Tokenized securities utilizing blockchain are legally considered securities. How virtual asset exchanges will connect with the securities market in terms of specific ways remains unclear as related regulations become more concrete in the future.
Nevertheless, analysts say that brokerages' decision to partner with exchanges is influenced by the customers, technology, and experience these exchanges have already secured. Virtual asset exchanges have accumulated technology and experience in trading and storing digital assets while operating platforms used by many retail investors.
Hwang Se-eun, senior researcher at the Capital Market Research Institute, said, "Virtual asset exchanges are already large-scale platforms with sufficient investor touchpoints and have accumulated significant know-how in digital asset management and custody." The researcher analyzed that as there is a high possibility for capital market products to expand in the digital asset field, brokerages are moving to proactively secure business foundations and capabilities to prepare for future market expansion.
Beyond Coins… Blockchain Expands to Stocks and Bonds
The background of brokerages' interest in virtual asset exchanges lies in the changing trend where blockchain's applications are broadening. Until now, blockchain was a technology that evoked virtual assets like Bitcoin, but it has begun to be utilized for existing securities such as stocks and bonds.
A representative example is tokenized securities. This refers to a method of recording securities such as stocks and bonds and their ownership relationships on a blockchain-based ledger. Financial authorities view tokenized securities not as a new type of financial product, but as issuing existing securities in a new way.
Recently, the Financial Services Commission announced a policy direction to expand tokenization, which has been centered on fractional investment, to existing financial products such as stocks, bonds, and funds. In the long term, plans are also being pursued to utilize stablecoins and other means as payment methods for tokenized securities transactions. The idea is to gradually build a market that utilizes blockchain from the issuance of securities through trading, clearing, and settlement.
Abroad, the combination of existing securities markets and virtual asset operators is also gaining momentum. On the 10th, U.S. NASDAQ announced it would invest $100 million in Payward, the parent company of virtual asset exchange Kraken. The two companies will cooperate on building market infrastructure for tokenized stocks and 24-hour trading. The London Stock Exchange (LSE) also announced on the 1st that it is partnering with Payward to build a tokenized stock market.
A financial industry official said, "It does not mean that virtual asset exchanges will become places that directly trade stocks and bonds in the future." The official added, "As blockchain's scope of application expands beyond coin trading to include the issuance, trading, and settlement of stocks and bonds, the value of the technology and business experience accumulated by virtual asset exchanges is also increasing."
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