Shinhan Investment Securities is teaming up with Musicow Invest to pursue issuance of fractional investment products based on music intellectual property (IP). It is moving to secure assets for issuance ahead of the institutionalisation of token securities (STO) and the launch of an over-the-counter exchange for fractional investment.

Shinhan Investment Securities said on Tuesday it signed a strategic memorandum of understanding (MOU) with Musicow Invest to acquire music IP and issue fractional investment products.

The two companies will jointly 추진 a large-scale music IP acquisition project. Shinhan Investment Securities will form a first music IP fund worth about 40 billion won as the project fund’s general partner.

Musicow will select target assets for acquisition based on its own music valuation and sourcing capabilities for high-quality IP.

The acquired music IP will later be issued as fractional investment products through Musicow Invest. The products are expected to be traded later on an over-the-counter exchange for fractional investment.

The two companies aim to complete music IP purchases in the second half of this year and finish issuing the products before the exchange opens in the fourth quarter.

A Shinhan Investment Securities official said, "Ahead of the launch of an STO over-the-counter exchange, the quality and scale of issuance assets will determine the market’s success or failure," adding, "This agreement could become a symbolic case in the fractional investment ecosystem."