Koscom, Hyundai Motor Securities Partner on KoSTO Tokenized Securities Platform

Koscom said Sept. 2 that it signed a memorandum of understanding with Hyundai Motor Securities to cooperate on the use of its shared tokenized securities platform and on related business development.

The companies held a signing ceremony at Koscom headquarters in Seoul on Sept. 1 and agreed to establish a cooperation framework ahead of the planned launch of South Korea's tokenized securities regime in February 2027. They aim to combine their business and technical capabilities to build shared infrastructure and service foundations supporting tokenized securities issuance and related operations.

Under the agreement, the two sides will pursue business and systems integration for Hyundai Motor Securities to use Koscom's joint tokenized securities platform. They also plan to jointly identify underlying assets and products for tokenized securities and set out procedures for issuance and account management. The partnership will include joint testing that reflects legal and institutional requirements, as well as investor-protection standards, and information sharing to help foster the market.

Koscom is building KoSTO, a shared tokenized securities platform for use by multiple securities firms. It has completed tokenized securities issuance infrastructure with LG CNS and finished a test-bed demonstration with Korea Securities Depository on linked total-volume management. With Hyundai Motor Securities joining the existing 12 brokerages, the number of securities firms participating in KoSTO has risen to 13.

Koscom is also expanding the scope of the project. The company is pursuing a proof of concept for tokenized securities settlement using stablecoins. It is also preparing plans to tokenize not only new types of securities, such as investment contract securities and beneficiary certificates, but also conventional standardized securities including bonds.

Hyundai Motor Securities plans to establish the systems and operational framework needed for its tokenized securities business based on KoSTO. It also aims to identify competitive underlying assets and products as it prepares to enter the tokenized securities market through product structuring and investor service planning.

"For the tokenized securities market to become fully active, innovation in individual products alone is not enough," Koscom Chief Executive Officer Yoon Chang-hyun said. "It must be backed by reliable infrastructure that can steadily support everything from issuance to rights management. Through cooperation with Hyundai Motor Securities, we will enhance the joint platform and lay the groundwork for financial investment companies to participate in the tokenized securities business at a reasonable cost."

"Tokenized securities present a new opportunity to connect a wide range of assets with regulated financial products and broaden investor access," Hyundai Motor Securities Chief Executive Officer Bae Hyung-keun said. "By combining Koscom's capital-markets IT infrastructure capabilities with Hyundai Motor Securities' strengths in product planning and finance, we will introduce safe and differentiated tokenized securities products and services."