Eugene Investment & Securities will join hands with blockchain specialist VTOZ to verify a method of paying subscription funds for tokenised securities with stablecoins.

Eugene Investment & Securities said on Sept. 21 it signed a memorandum of understanding with VTOZ to use stablecoins for settling subscription funds for tokenised securities. Under the agreement, the two will jointly review the scope and ways to apply stablecoins in securities operations.

The companies also plan to carry out a proof of concept for a stablecoin used to settle subscription funds for tokenised securities. Based on the results, they plan to pursue infrastructure integration and additional cooperation.

Tokenised securities can currently use distributed ledger technology to record holdings and changes in rights on-chain, but settlement of subscription funds must go through existing bank account systems. Issuance and transfer of the securities and fund settlement are handled in separate systems.

The two companies plan to verify whether applying stablecoins to subscription-fund settlement could make it possible to link the process from subscription to payment and settlement on-chain.

They will examine technical feasibility and the scope for applying the approach in securities operations through the proof of concept. They will also review the possibility of linking it with actual infrastructure in the future.

Eun Seok-hoon (은석훈), head of the AX Innovation Office at Eugene Investment & Securities, said the agreement was a first step toward infrastructure combining tokenised securities and stablecoins. He said the company would use its previously developed tokenised securities issuance platform to find practical ways to apply it.