The author is an analyst of NH Investment & Securities. She can be reached at yd.yoon@nhqv.com. — Ed.
Partnering up with Dunamu and Lambda256, Hanwha I&S has been actively preparing to launch a blockchain business. By utilizing its extensive network, the firm is expected to work with blockchain startups over the long term. We believe that the rise of the STO market will present opportunities for Hanwha I&S, given its competitive edge in promoting new businesses.
Likely to collaborate with blockchain firms down the road
Since 2018, Hanwha I&S has been collaborating with a host of blockchain startups via stake investment and MOUs. Some of the startups that received particular market attention include Dunamu and Lambda256. Owning a 6% stake in Dunamu, operator of the cryptocurrency exchange Upbit, Hanwha I&S’s share price has fluctuated in line with the prices and trends of digital assets, rather than those of the securities sector.
Although digital asset players are interested in entering the STO market, their absence of a securities business license makes it difficult. Given such, we expect to see collaborations between Hanwha I&S and a range of digital asset players over the long term.
In our view, Hanwha Group’s strong interest in and aggressive support for the nurturing of new growth businesses (as well illustrated by other Hanwha affiliates including Hanwha Systems and Hanwha Aerospace) bodes well for the securities company’s advance into the security token market.
Platform power to strengthen on release of new investment products
Upon the opening of the domestic digital security market, we expect Hanwha I&S to mainly focus on trading services. The firm already possesses a solid in-house trading solution. Though its relatively weak competitiveness in the MTS market remains a problem, the firm is well aware of this issue, and accordingly, it plans to expand its investment channels. Hanwha formerly joined hands with Woori Bank (Woori WON) and PAYCO for stock trading services.
The firm is also committed to new product development for its security token business, with strong interest in products using property and unlisted stocks as underlying assets. The firm has already secured related partner companies. Its plan is to attract more traffic on its trading platform by offering attractive tokenized security products to retail investors.