JAN 12, 2024
Korea ST Exchange joined by various firms to bring security tokens to agriculture industry
Korea ST Exchange has committed to conducting a demonstrative experiment involving security tokens to help advance the domestic agriculture and livestock industry along with six other companies, including Korea Venture Agriculture Association, Maeil Business Agtech Innovation Center, MAM TECH, XR Touch, Jangbogo Asset and Crowdy. Representatives from all seven firms participated in an agreement signing ceremony held at the Maekyung Media Center on Thursday, according to local news site Financial News.
"Smart farms are an industry in South Korea with great potential for growth that is gaining a competitive edge in the global market," said Cho Won-dong, CEO of Korea ST Trading. "With this agreement, our council plans to strengthen the smart farm security tokens ecosystem to increase the profits of domestic agricultural producers and strengthen global competitiveness."
Fostering agricultural innovation
The experiment aims to promote the innovative trading system of smart farms for the development of the agriculture and livestock industry and discover stable underlying assets that will serve as a bridge for integration with innovative finance such as digital assets and security tokens.
With this agreement, the parties will cooperate on issuing and distributing tokenized real assets, commodity tokens and security tokens, building infrastructure to support and encourage the trading of security tokens, exchanging information and sharing collaborative networks to build each participating firm’s business.
They also plan to issue security tokens in the form of investment contract securities that attribute profits and losses according to the results of joint business ventures by creating a device to tokenize contracts for harvesting agricultural products.
Korea ST Trading’s comprehensive role
Based on the platform, Korea ST Trading will provide support for all services such as security token distribution, trading, management, dividends, liquidation and investment information to help expand the smart farm ecosystem and attract private investments.