Eight Percent, an online investment-linked finance company, is acquiring token securities operator Apanda Partners as it expands into the digital alternative investment market.

Eight Percent said on Sunday it made a strategic investment to become Apanda Partners' largest shareholder.

The investment reshuffled Apanda Partners' key shareholders to include Eight Percent, Shinhan Investment Corp and EQBR. Eight Percent plans to support Apanda Partners in setting mid- to long-term business strategy and upgrading its asset review system, based on its experience in operating online investment-linked finance, including understanding the loan market, credit assessment, product operations and post-management.

Shinhan Investment Corp will participate in Apanda Partners' innovative financial service as a trust and account management institution. It will separate and manage investor funds and support a stable trading environment. Other key shareholders, including IGIS Asset Management and Namhae Housing & Construction, also plan to continue cooperation in finance, real estate and blockchain.

Apanda Partners plans, within the scope permitted by relevant approvals and the legal and institutional framework, to structure real and financial assets that generate stable cash flows into digital investment products. These include real estate-backed loan claims, corporate loans, infrastructure, receivables and lease receivables. Securities industry-related tasks, such as securities issuance, investment brokerage and linkage to token securities distribution, will be carried out independently by Apanda Partners after obtaining the required licenses.

The two companies aim to combine online investment-linked finance and security token offerings to create an investment route linking high-quality alternative investment assets in South Korea with global capital. They also aim to provide new liquidity and fundraising opportunities in the domestic asset market and to expand access to South Korean financial assets for overseas investors.

Apanda Partners has promoted a blockchain-based fractional investment business that allows multiple investors to diversify their investments by using real asset-backed loan claims as underlying assets. On Dec. 21, 2022, it and Shinhan Investment Corp were designated by the Financial Services Commission as an innovative financial service for a "blockchain-based monetary claim trust beneficiary securities trading platform service" and built the related platform and business foundation.

The service involves placing loan claims backed by large real estate and special assets into trust, issuing trust beneficiary securities through electronic registration, and distributing corresponding mirroring tokens on the platform.

More recently, it has also been pursuing preliminary approval for "beneficiary securities investment brokerage 2-14-1," a newly created sub-license unit under the securities business, in line with the institutionalisation of token securities. Once preliminary and final approval procedures are completed, it will be able to conduct a non-monetary trust beneficiary securities investment brokerage business combining blockchain technology and licensed securities operations.

Apanda Partners appointed Cho Hyo-hyun (추효현) as chief executive in April and plans to maintain an independent management system even after the investment.

Eight Percent CEO Lee Hyo-jin (이효진) said, "Online investment-linked finance is also essentially a form of fractional investment that connects loan claims with multiple investors," adding, "It is a natural development process for Eight Percent to expand its business into the digital capital market."