NH NongHyup Bank said on Tuesday it completed a proof of concept, or PoC, jointly with Aton and MusicCow on a stablecoin-based subscription and distribution process for tokenised securities, or STOs. The three companies have been verifying the feasibility of blockchain-based financial services since signing a related business agreement in August last year.

The PoC was conducted around a scenario in which overseas fans subscribe to and invest in K-pop copyright STOs using a won-based stablecoin. It applied the won stablecoin as a subscription method to minimise foreign-exchange risk and established a structure that uses blockchain technology to handle the entire process from subscription to settlement in real time and transparently.

Based on the results, the bank plans to carry out a second PoC in its own blockchain mainnet environment by the second quarter. The second stage will go beyond the first stage’s concept definition and will design and test the full process of subscription, allocation and clearing using a virtually issued NH NongHyup Bank stablecoin.

In particular, the second stage will use the bank’s in-house blockchain mainnet based on the Ethereum Virtual Machine, or EVM, operating on a public cloud. The goal is to build a minimum viable product model that applies a token protocol to the stablecoin and STOs, taking into account future interoperability with various blockchains and digital assets.