Shinhan Investment is teaming up with Blueward and the Lotte Future Strategy Research Institute to build business models for content-based fractional investment and token securities.

Shinhan Investment said on Tuesday it signed a three-party memorandum of understanding with Blueward and the Lotte Future Strategy Research Institute to pursue joint projects on fractional investment and token securities. The agreement runs for 3 years from the signing date.

The agreement is aimed at detailing business models for investment contract securities and token securities that use content as underlying assets by combining Shinhan Investment's financial infrastructure, the Lotte Future Strategy Research Institute's content business capabilities and Blueward's experience commercialising token securities.

The three plan to cooperate on jointly reviewing content-based investment contract securities and token securities business models, linking account management institution operations and issuance systems, and responding to changes in relevant laws and institutions.

The partners also divided roles. Blueward will be responsible for identifying underlying assets for token securities and detailing business models. Shinhan Investment will use its securities industry infrastructure to support account management institution operations and practical work related to the issuance and management of token securities.

The Lotte Future Strategy Research Institute will coordinate the planning, production and distribution of a token securities business using intellectual property rights, based on assets of Lotte Group affiliates and its experience in the content business.

Lee Seon-hoon (이선훈), CEO of Shinhan Investment, said, "We will support the token securities business so it can take root in the market through Shinhan Investment's securities infrastructure and expertise."