Korea’s SM Entertainment has unveiled plans to build its own cryptocurrency and blockchain, in partnership with technology organisation CT-AI Labs.

The plans were announced by CT-AI Labs CEO Sang-Sik Joo at the developer conference of South Korean crypto exchange UpBit, as reported by local news outlet ITChosun.

Joo stated that are currently in talks with partners who will construct the platform.

Pop music giant SM Entertainment predicts the blockchain platform will connect the physical and virtual world. Joo spoke about the development by describing Blockchain’s role in the entertainment industry: “Blockchain from the entertainment standpoint is a decentralized entertainment entity.”

“The entertainment business as it stands utilizes inefficient settlement and payment systems – issues that blockchain could help address,” Joo added.

According to a report by Coin Telegraph, SM Entertainment is the biggest entertainment firm in South Korea and a force in the so-called K-pop world. The company was founded in 1995 by Lee Soo-man – often referred to as the President of Culture.

SM Entertainment is listed on the Korean stock exchange and has a market capitalisation of around $600 million. The firm underwent a management reshuffle recently, as concerns were raised in regard to the firm’s finances and certain business decisions. 

The company is not the first to have suggested the use of blockchain technology in the K-pop industry.

At the end of last year, the Ko-fun platform was launched to permit K-pop-related cryptocurrency transactions on a blockchain. The aim was to issue coins for individual music acts, such as a BTS Coin, says Coin Desk.

The music industry has been viewed as a key opportunity for blockchain technology. The Coin Telegraph report adds that the tech could permit direct economic interaction between fans and artists, who would receive a larger cut of the value they generate.