Sewon E&C, a South Korean hydraulics firm that is listed on the Korea Exchange (KRX), is in the process of negotiating a contract with a major decentralized finance (DeFi) player over proposed cryptocurrency, non-fungible token (NFT), and metaverse collaboration.
Last month, the news site iNews24 said that the firm had completed a month-long accounting-related “due diligence and legal review” and was ready to sign on the dotted line after reaching an agreement in principle with the crypto business Delio.
The hydraulic provider, which was founded in 1971, said it was planning an equity investment in Delio and beginning discussions about business cooperation related to digital finance.
Sewon announced that it would be entering the "cryptocurrency-related" sector, including blockchain-based NFTs, DeFi, and metaverse. The firm, formerly known as Miwon Heavy Machinery, is known for its hydraulics equipment and specializes in pumps, valves, cylinders, and bioengineering solutions.
Following an extraordinary general meeting of shareholders, Sewon committed to expanding into blockchain system development, as well as payment system development and IT-related study. On hearing the news, Sewon's stock rose by 2%.
Delio will help the firm with a crypto-powered real estate securitization solution, according to the press release.
Delio was established in 2018 and focuses on providing cryptoasset deposit and staking-like interest services, as well as secured loans made using bitcoin (BTC) and other tokens, as well as other DeFi-related activities.
Delio announced the release of Blue, its crypto-backed loans product – South Korea's first – in November with a total capitalization of $100 million. Users of Blue can take out fiat loans at interest rates of up to 16 percent per year using BTC and other cryptocurrencies as collateral.
In November, Delio signed a cooperation agreement with the financial services business OK Financial Group and was granted its Information Security Management System from the government-run Korea Internet & Security Agency (KISA) in October.
A representative Sewon stated, “We plan to actively cooperate with South Korea’s Number One crypto finance company Delio to promote various types of virtual asset-related businesses.”