The Korean Stock Exchange-listed South Korean hydraulics firm Sewon E&C is in the final stages of sealing a deal with a major decentralized finance (DeFi) player over proposed crypto, non-fungible token (NFT), and metaverse collaboration.
The media outlet iNews24 reported that the company had agreed on a deal in principle with the crypto firm Delio last month and was now ready to sign on the dotted line after completing a month-long accounting-related “due diligence and legal review.”
The hydraulics provider, which was established in 1971, stated that it was preparing an “equity investment” in Delio, and was “in the process of” discussing “digital finance”-related business cooperation.
Sewon announced that it would be expanding into what it called “cryptocurrency-related businesses,” including such as “blockchain-based NFTs, DeFi and the metaverse.” The firm, formerly known as Miwon Heavy Machinery, built its name in the hydraulics industry and also specializes in pumps, valves, cylinders, and bioengineering solutions.
Following an extraordinary general meeting of Sewon shareholders, the firm committed to expanding into “blockchain system development,” as well as “payment system development” and IT-related research. Sewon’s shares jumped by 2% on the news.
The company will work with Delio on a crypto-powered real estate securitization solution, it added.
Delio was founded in 2018 and its core business avenues involve cryptoasset deposit and staking-like interest services, as well as secured loans making use of bitcoin (BTC) and other tokens, as well as other DeFi-related operations.
In November, Delio rolled out Blue, its crypto-backed loans offering – South Korea’s first – with an initial total capitalization of USD 100m. Using BTC and other coins as collateral, Blue users can take out fiat loans at annual interest rates of up to 16%.
In summer, Delio struck a deal with the financial industry heavyweight OK Financial Group, and in October Delio received its Information Security Management System from the government-run Korea Internet & Security Agency (KISA).
An official from Sewon was quoted as stating:
“We plan to actively cooperate with South Korea’s Number One crypto finance company Delio to promote various types of virtual asset-related businesses.”
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