South Korea Exchange Launches Blockchain-Based Private Stock Trading Market

Korea Exchange (KRX), South Korea’s only stock exchange, has launched a new service that can be used to trade startup stocks on the open market.

The service, called Korea Startup Market (KSM), is being offered in conjunction with South Korean blockchain startup Blocko, which has launched Coinstack, a blockchain and services platform.

The Coinstack platform will provide documentation and authentication services by checking customer information provided to the system by Korean banks such as JB Bank, KISA, Lottecard, Paygate and others.

The Korea Exchange has been researching blockchain technology since 2015 and has set up a special task force to provide strategic guidance on how to use blockchain technology. The results released now are just part of the services KRX provides to traders.

Blocko CEO Won-Beom Kim said in a statement that the service also marks the first use case of how blockchain technology can be used in the country’s over-the-counter stock trading market.

He went on to say that Blocko is currently working to demonstrate how blockchain technology can be used in more industries, including bonds and promissory notes.