Meritz Securities Signs MOU With Canton Foundation on Financial Asset Tokenization, Institutional Blockchain Infrastructure

Meritz Securities said on October 14 that it had signed a memorandum of understanding with the Canton Foundation, which operates the global blockchain network Canton Network, to cooperate on financial asset tokenization in South Korea and the use of blockchain infrastructure for institutional clients.

The brokerage held the signing ceremony with the Canton Foundation earlier this month at its headquarters in Seoul's Yeouido district. Attendees included Meritz Securities Chief Executive Officer Jang Won-jae and Canton Foundation Chief Executive Officer Vivek Diwakar, along with other officials from both sides.

Under the agreement, the two sides will jointly explore ways to apply blockchain technology to South Korea's capital markets. In particular, they plan to examine whether financial assets can be tokenized within the current regulatory framework and review whether the Canton Network's transaction privacy technology can be applied in financial markets.

They also plan to expand cooperation with global financial institutions. Meritz Securities said it will continue exchanges with overseas financial companies participating in the Canton Network while exploring potential uses for institutional blockchain technology. It aims to gradually broaden the scope of cooperation as South Korea's virtual-asset regulations and systems become more defined.

The partnership has laid the groundwork for reviewing ways to link South Korea's capital markets with global virtual-asset infrastructure, a Meritz Securities official said. The company plans to assess step by step how such infrastructure could be used safely and efficiently while monitoring progress in regulatory reforms.

Canton Network is a blockchain platform tailored for financial institutions and developed by U.S. blockchain technology company Digital Asset. It is used as institution-focused blockchain infrastructure because its structure reflects regulatory requirements in traditional finance and includes features designed to protect the confidentiality of transaction information.