Hanwha Investment & Securities has completed the development of a token securities platform based on the Avalanche blockchain, putting the firm ahead of much of the industry in adopting public ledger technology. Developed by blockchain technology firm FairSquare Lab, the platform began development last year and was designed to operate across multiple networks, including Avalanche and the enterprise blockchain Hyperledger Besu, the Seoul Economic Daily reported.
Token securities are traditional financial instruments, such as stocks and bonds under the Capital Markets Act, that are digitized by recording rights information on a distributed ledger. Within these networks, multiple financial institutions participate jointly to manage the issuance, transfer, and overall records of the securities.
While some financial firms like Mirae Asset Securities have previously implemented enterprise blockchains like Hyperledger Besu, Hanwha Investment & Securities expanded its scope by incorporating Avalanche’s public blockchain ecosystem. Avalanche allows institutions to launch permissioned subnetworks with restricted participants and validators, making it viable as a dedicated, private network suited for regulated financial operations.
In tandem with private-sector developments, the Korea Securities Depository is building its own token securities infrastructure to link directly with multiple blockchain architectures. According to its published standard requirements guidelines for token securities distributed ledgers, the depository’s platform will support connections to Hyperledger Besu, Hyperledger Fabric, and Avalanche. Participation in these ledgers will be restricted to electronic registration and account management institutions, allowing the depository to directly participate and verify overall issuance volumes alongside electronic registration data.
The decision by the national depository to integrate Avalanche was directly prompted by demand from private financial firms actively participating in token securities consultative groups and ongoing pilot projects. The depository noted that its support is not restricted to these three blockchains, as financial institutions seeking to deploy new distributed ledger technologies can receive technical support and connection approval following prior consultations.
