Korea Exchange (KRX) which is the only securities exchange in South Korea announced that it was moving to investigate the potential of blockchain technology. The move is to develop an over-the-counter trading platform using the technology.
Changjin Lee, head of IT strategy planning at KRX indicated that KRX has been carefully studying the technology since 2015 and that this project is not just a response to international competitors. Also Lee said that the plans to start working on implementations came from the highest levels of organization.
Talking to CoinDesk, Lee said, “Kyungsoo Choi of KRX, identified the importance and potentials of blockchain technology and ordered them to find how to use that technology. After that, we decided to take action about the technology.”
Lee also mentioned that this is in the earlier stages of reaching out potential members of South Korea’s financial system in a move to expand its efforts. This includes the country’s central securities depository (CSD) and the Korea Securities Depository.
“It is surveying technical trend of blockchain, use cases, considering how to apply blockchain into KRX information systems, and collaborating with other organizations," Lee mentioned.
Setting up an internal task force that meets periodically, but irregularly the exchange provides members of the company with "guidance and solutions” centered on the emerging technology, said Lee. Using of blockchain in the OTC markets, Lee explained that it would primarily enable KRX to offer investors "more convenient and faster services" by filling a gap in current market services.
Apart from KRX, BNP Paribas is also seeking to create a crowd funding platform based on blockchain, which would extend its business lines.
