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TAPP Engine and KoreInside have announced a partnership to develop the first stablecoin designed specifically for private capital markets.
The initiative integrates TAPP Engine's financial technology solutions with KoreInside's compliance-oriented infrastructure, utilizing a permissioned blockchain to support production-grade operations.
This collaboration seeks to address challenges in private market transactions, including fragmentation, compliance risks, and operational inefficiencies.
Key Takeaways
- Innovative Stablecoin Launch: Introduction of the first stablecoin for private capital markets, integrated with permissioned blockchain technology for secure operations.
- Operational Improvements: Facilitates faster settlements, reduced costs, and enhanced liquidity for financial institutions.
- Compliance Emphasis: Utilizes KoreInside's infrastructure, including KoreID and KoreChain, to ensure regulatory compliance and interoperability.
- Target Users: Benefits regulated intermediaries such as broker-dealers, RIAs, ATSs, banks, and credit unions.
- Market Implications: Addresses fragmentation in private markets, potentially supporting growth and efficiency for all participants.
Private capital markets encompass areas such as private equity, venture capital, and alternative investments, which have experienced significant expansion.
However, participants often face disjointed systems that hinder efficient capital deployment and transaction processing.
The new stablecoin, embedded within KoreInside's KorePay technology, is intended to facilitate faster settlements, improved liquidity, and greater transparency for regulated intermediaries.
Partnership Details and Company Profiles
TAPP Engine specializes in providing enterprise-grade infrastructure for wealth management, brokerage, cash management, and digital assets.
Targeting credit unions, community banks, and registered investment advisors (RIAs), the firm offers SaaS-embedded, white-label solutions that integrate various financial services through APIs and scalable platforms.
This enables institutions to enhance client experiences and operational efficiency across multiple asset classes.
KoreInside, founded in 2016, operates as a neutral infrastructure provider for regulated intermediaries in private capital markets. Functioning similarly to the Depository Trust & Clearing Corporation (DTCC) for public markets, it delivers end-to-end services including clearing, settlement, disbursement, distribution, and compliance.
Key components include KoreID for identity management and KoreChain, an SEC-qualified blockchain for private securities, ensuring auditable and compliant transactions.
The partnership combines these capabilities to create a stablecoin that supports interoperability among broker-dealers, alternative trading systems (ATSs), asset managers, transfer agents, and other stakeholders.
Tosin Osunsanya, Founder and CEO of TAPP Engine, stated:
“This marks a meaningful shift in how credit unions, community banks, and RIAs can participate in private capital markets. Our stablecoin infrastructure is fully operational and available today, enabling faster settlement, improved liquidity management, reduced transaction friction, and enhanced transparency across transactions. Institutions can deploy capital more efficiently, streamline deal execution, and participate in both traditional and tokenized structures with greater control, flexibility, and speed.”
Dr. Kiran Garimella, co-founder, chief scientist, and CTO of KoreInside, commented:
“The stablecoin capability is built into KoreInside's KorePay technology and engineered for production-grade deployment. It runs on our compliance-first, permissioned infrastructure so that institutions can move from decision to live operations.”
This development aims to modernize private markets by enabling seamless activities from issuance to aftermarket support, aligning them more closely with the efficiency of public markets while maintaining regulatory standards.
Conclusion
This partnership between TAPP Engine and KoreInside represents a strategic advancement in financial infrastructure, focusing on the integration of stablecoin technology into private capital markets.
By prioritizing compliance and efficiency, the collaboration could enable broader participation from financial institutions, contributing to the maturation of private market operations.
As the sector continues to evolve, such initiatives may play a key role in bridging traditional finance with digital innovations, fostering sustainable growth and regulatory adherence.
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FAQs:
1. What is the focus of the TAPP Engine and KoreInside partnership?
The partnership aims to launch the first stablecoin for private capital markets, enhancing transaction efficiency and compliance through blockchain integration.
2. How will the stablecoin improve private capital markets?
It will enable faster settlements, better liquidity management, reduced friction, and increased transparency for institutions handling private investments.
3. What key technologies are used in this stablecoin?
The stablecoin is built into KoreInside's KorePay on a permissioned blockchain, incorporating KoreID and KoreChain for secure, compliant processes.
4. Which entities can benefit from this stablecoin?
It is targeted at regulated intermediaries, including broker-dealers, RIAs, ATSs, banks, credit unions, and asset managers in private markets.
5. Is the stablecoin infrastructure currently available?
Yes, the infrastructure is fully operational and ready for deployment as of the announcement.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
