The South Korean Cryptocurrency exchange Bithumb recently invested in Codebox, a firm that specializes in operating a domestic asset tokenization platform and signed an MOU with Standard & Consensus (SNC), a firm that provides rating services for Chinese blockchain projects.

Codebox is a firm that provides a complete solution such as issuing and managing security tokens based on real assets like real estate or artwork. Bithumb, along with Codebox plans to develop technology collectively in areas such as issuing security tokens and establishing platforms through diverse collaborative efforts. Last April, Codebox launched a mainnet of “CodeChain,” a complete blockchain platform for an asset tokenization and exchange services. CodeChain supports digital asset issuance and transactions and provides a system that protects personal information of the asset holder and allows the user to program the token while upholding legal restrictions.

Bithumb intends to dominate the security token market and become a leading blockchain technology company through the outlined cooperative efforts with Codebox. With Security Token Offering (STO) emerging as a liquidation measure of real assets and its growth potentials evaluated to be significant, global firms and major cryptocurrency exchanges have started to develop platforms aggressively.

The crypto exchange also intends to cooperate with SNC China in areas relating to security token business such as deal sourcing, fund procurement, public offerings, etc. SNC will oversee analysis and assessment of the STO project of seriesOne, Bithumb’s partner firm in the US.

Bithumb is currently planning to create a security token exchange in the US with seriesOne, a US fintech firm, and has applied for an Alternative Trading System (ATS) license to the SEC. As a technical partner of seriesOne, Bithumb expects to manage exchange establishment and operation. It is a sole domestic major exchange that is pursuing a security token business abroad.

A Bithumb personnel stated: “Bithumb strives to cooperate with promising start-ups that have gained recognition for their technology and promote related industries, as well as becoming a firm with leading blockchain technology itself.” He also asserted, “The method that combines cryptocurrency and blockchain with real economy such as security token is believed to determine the success of the blockchain industry.”

by Megha Bhattacharya
Market Analyst at IBS Intelligence