NH NongHyup Bank validates combined stablecoin-STO model, targeting K-content investment

NH NongHyup Bank said on the 28th that it has completed a validation test of subscriptions for K-content tokenized securities (STOs) using stablecoins.

On the 28th, NH NongHyup Bank said it had completed a proof of concept (PoC) for a stablecoin-based STO subscription and distribution process in collaboration with ATON and Musicow. Since signing a related business agreement in August last year, the three companies have been verifying the feasibility of blockchain-based financial services.

The PoC centered on a scenario in which overseas fans subscribe to and invest in K-pop copyright STOs using a Korean won-pegged stablecoin. By using the won-based stablecoin as the subscription payment method, it reduced risks stemming from exchange-rate fluctuations, and implemented a structure that enables the entire process—from subscription to settlement—to be handled transparently in real time using blockchain technology.

Based on the results, NH NongHyup Bank plans to run a second PoC on its in-house blockchain mainnet environment through the second quarter. The second PoC will go beyond concept validation by virtually issuing NH NongHyup Bank’s stablecoin and designing and testing the full end-to-end process for subscription, allocation and clearing.

In particular, the second PoC will leverage NH NongHyup Bank’s EVM (Ethereum Virtual Machine)-based proprietary blockchain mainnet, which is operating on a public cloud. The goal is to build a minimum viable product (MVP) model that applies a token protocol to the stablecoin and STOs, taking into account future interoperability with a wide range of blockchains and digital assets.

NH NongHyup Bank is also expanding commercialization of its digital-asset business, including by working with global technology and payments companies such as Fireblocks, Avalanche, Mastercard and Worldpay to run a 'tax refund digitization PoC' that digitalizes value-added tax refund procedures for tourists.