Hybe, the agency behind K-pop band BTS, and Dunamu, the operator of crypto exchange Upbit, have agreed to set up a joint venture to work on non-fungible tokens (NFTs), according to a regulatory filing on Wednesday.
The two companies will exchange shares through a third-party allotment capital increase, according to the announcement. Hybe will acquire a 2.5% stake in Dunamu worth KRW 500 billion ($423 million), while Dunamu will buy KRW 700 billion of newly issued Hybe shares, which represent a 5.6% stake in the music agency.The joint venture will create NFT photocards related to the K-pop stars, which will eventually be traded on Hybe’s app Weverse, the chairman of the two firms said at a briefing early on Thursday. Weverse is an app for content and communication between artists and fans.Hybe shares were up 4.9% at press time on Thursday.Upbit is one of Korea’s biggest crypto exchanges and one of four that are allowed to offer Korean won trading pairs, after successfully jumping through regulatory hoops in September. The other three are Bithumb, Coinone, and Korbit.BTS is one of the most successful K-pop bands in history. Last week, Hybe issued a warning against a coin that was marketing itself as related to BTS.