Hyundai Motor Securities will work with Koscom to build a related platform and business foundation ahead of the introduction of the tokenised securities (STO) system in February next year.

Hyundai Motor Securities said on Sept. 2 it signed a memorandum of understanding with Koscom on Sept. 1 at Koscom's headquarters in Yeouido, Seoul, to promote a tokenised securities platform business.

Under the agreement, the two companies plan to flesh out tokenised securities technology and business models and expand cooperation to build related infrastructure.

Key areas of cooperation include a tokenised securities platform and distributed ledger technology, ways to use a joint platform and the discovery of new business models.

Hyundai Motor Securities plans to use Koscom's information technology capabilities to review technical requirements for its tokenised securities business and also refine ways to link it to existing securities business systems.

It also plans to use the partnership to expand its digital asset business and secure service competitiveness in the tokenised securities market.

Hyundai Motor Securities CEO Bae Hyung-keun (배형근) said the cooperation was significant in that it lays a stable foundation for the tokenised securities business. He said the companies would work closely to build related infrastructure and respond flexibly to institutional and technological changes.