Meritz Securities will work with the Canton Network, a global institutional blockchain network, to explore the possibility of tokenising domestic financial assets and building digital asset infrastructure.

Meritz Securities said on Tuesday it signed a memorandum of understanding in the digital asset sector with the Canton Foundation, which operates the Canton Network.

The two sides agreed to cooperate on tokenisation of domestic financial assets and the digital asset infrastructure that supports it.

They will review ways to convert financial assets into tokens within the scope allowed by relevant regulations. They also plan to discuss using the Canton Network’s institutional blockchain infrastructure, which has privacy protection functions, in South Korea’s capital market.

Meritz Securities will also review ways to exchange with global financial institutions participating in the Canton Network ecosystem and join related programmes. It plans to expand the scope of cooperation with the Canton Foundation in stages in line with progress in improving domestic digital asset-related systems.

The Canton Network is an institutional blockchain platform developed by U.S. blockchain company Digital Asset. It was designed to reflect the regulatory environment of existing financial markets, and it features privacy protection functions needed in transactions between institutions.

A Meritz Securities official said the cooperation had laid the groundwork for reviewing ways to link South Korea’s capital market with global digital asset infrastructure. The official said the company would continue to review ways to use digital asset infrastructure while monitoring progress in system improvements.