Nextrade, a domestic alternative trading system (ATS), is promoting the trading of security tokens (STOs) backed by K-pop music copyrights. This attempt to expand the tokenization market, previously focused on real assets, into the cultural and intellectual property (IP) realm is expected to mark a turning point for "K-content" to enter the financial market in earnest.
In an interview with Bloomberg, Kim Hak-soo, CEO of Nextrade, stated, "We are exploring new forms of security tokens based on intellectual property (IP), such as K-culture." He added, "We will secure differentiated competitiveness by developing products that allow trading in assets not listed on the Korea Exchange (KRX)." He emphasized, "The new paradigm of the digital capital market will ultimately be created at the convergence of real and cultural values."
Nextrade has formed a consortium with Musicow, a music copyright fragment investment platform, and has applied for preliminary approval from the financial authorities for a security token offering (STO). Upon approval, investors will be able to trade security tokens that share a certain percentage of K-pop music copyright revenue. In other words, investing in a portion of your favorite K-pop song will become possible within the established market.
This project carries significance beyond simply introducing a new investment product. The government's recent push to institutionalize security token offerings (STOs) is signaling a shift toward embracing a diverse range of non-financial assets, including content and copyrights, in addition to physical assets. Nextrade's K-pop-based STO project is expected to serve as a prime example of the cultural industry's capitalization amidst this deregulation trend.
Furthermore, given the global influence of K-content, there's a strong possibility that this structure will be integrated into overseas markets in the future. Analysts suggest that if similar copyright tokens are issued in regions with strong Korean Wave consumer bases, such as Japan and Southeast Asia, a new "fan-based capital market" could emerge, allowing global fans to directly invest in artists' copyrights.
Nextrade plans to expand its copyright-based STO offering beyond music to include dramas, webtoons, and movies. This represents the first experiment in translating Korea's K-content competitiveness into a tokenized financial ecosystem, and is considered a symbolic attempt to blur the lines between capital markets and the cultural industry.
