May 25, 2024
Latest Cryptocurrency News

Korean Asset Manager with $500 Billion AUM Partners with Polygon Labs for Tokenized Securities Network

Mirae Asset Securities, the largest financial group in South Korea with assets under management exceeding $500 billion, announced on Thursday its collaboration with Polygon Labs, an Ethereum scaling platform, to advance the tokenization of assets within the finance sector and promote the adoption of Web3 technologies.

Polygon Labs will serve as a technical consultant within The Mirae Asset Security Token Working Group. This group’s primary objective is to establish the necessary infrastructure for the issuance, exchange, and distribution of tokenized securities. This information was conveyed in a press release shared with CoinDesk.

The working group comprises various other companies, including Linger Studio and Coin Plug, and operates independently from initiatives such as Next Finance Initiative (NFI), led by Mirae, Hana Financial, and SK Telecom’s security token consortium.

Ahn In-sung, head of the digital assets division at Mirae Asset Securities, expressed their intent: “Polygon Labs is a globally renowned blockchain technology development company that is at the forefront of innovation in the realm of Web3. Through our technical collaboration with Polygon Labs, Mirae Asset Securities aims to establish a prominent global position in the realm of tokenized securities.”

Tokenization involves converting real-world assets, such as real estate, bonds, fine art, and equities, into digital tokens on a blockchain.

Several prominent players in traditional finance, such as Franklin Templeton and Hamilton Lane, an esteemed investment firm managing over $823.9 billion in assets, have already initiated tokenization projects on Polygon. The Monetary Authority of Singapore’s experimental tokenization initiative, Project Guardian, executed foreign exchange and sovereign bond transactions on Polygon last year.

According to estimates by Boston Consulting Group and investment firm ADDX, the potential business opportunity in asset tokenization is poised to increase 50-fold to reach $16.1 trillion by 2030, constituting 10% of the global gross domestic product.

Sandeep Nailwal, Executive Chairman of Polygon Labs, anticipates that Mirae’s endeavours will significantly bolster the adoption of Web3 technologies within the financial industry. He stated, “Mirae exemplifies a forward-thinking company dedicated to staying abreast of the ever-evolving digital finance landscape. Their venture into tokenization will undoubtedly accelerate the widespread adoption of Web3 among other financial institutions.”

He also noted, “Simultaneously, Mirae’s initiatives will play a pivotal role in establishing interoperability between South Korea’s domestic financial systems and their international counterparts.”

Image by Freepik

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