KB Securities will join forces with global tokenisation platform Securitize and the Optimism Foundation, which operates the Ethereum layer-2 network OP Mainnet, to launch a token securities (STO) business for domestic institutional investors.

KB Securities said on Tuesday it signed a memorandum of understanding with Securitize and the Optimism Foundation to jointly 추진 a domestic asset-backed token securities business.

Under the agreement, KB Securities will be in charge of product supply by using its capabilities in underwriting, issuance and sales of financial products and its institutional client base. Securitize will provide tokenisation infrastructure, and the Optimism Foundation will support the blockchain network.

KB Securities plans to first introduce a tokenised money market fund (MMF) and tokenised funds using flagship investment strategies of KB Asset Management for institutional clients.

It plans to gradually expand tokenised assets to stocks, U.S. American depositary receipts (ADRs), corporate bonds and government bonds, in line with progress in overhauling domestic rules related to token securities.

It is also reviewing a plan for Securitize to supply existing funds tokenised with global asset managers to domestic institutional investors.

Securitize is working with global financial firms including BlackRock, Apollo, BNY, Hamilton Lane and KKR. The company said the scale of tokenised assets issued and managed on its platform is about $5 billion.

It also provides infrastructure needed for the issuance, management and trading of tokenised products, including BlackRock's tokenised fund BUIDL.

The Optimism Foundation operates OP Mainnet, an Ethereum layer-2 (L2) network. OP Mainnet is compatible with the Ethereum Virtual Machine (EVM), and its underlying technology, the OP Stack, is used in several blockchain networks including Coinbase's Base.

The three companies plan to use the cooperation to build a business system that runs from issuance to supply of tokenised products for institutional investors.

Park Jae-man (박재만), a managing director at KB Securities, said, "This agreement is meaningful in that it combines each company's professional capabilities to lay the foundation for a token securities business for domestic institutional investors." He added, "We will continue to expand cooperation with global partners and provide new financial products and services."