South Korean Financial Firm Mirae Asset Securities Partners with Polygon Labs for Financial Tokenization
South Korean group Mirae Asset Securities announced its collaboration with Polygon Labs.
Fri, 08 Sep 2023, 04:23 am UTC
Mirae Asset Securities, renowned as South Korea's top financial group boasting over $500 billion in managed assets, announced its collaboration with Polygon Labs on Thursday. This partnership aims to explore and develop the financial world's tokenization further, emphasizing the rise of Web3 technologies.
As part of this new venture, Polygon Labs will serve as a technical expert for the Mirae Asset Security Token Working Group. This group has been formed to design and develop systems that allow the issuance, trade, and distribution of tokenized securities, as shared in a press release..
Interestingly, the working group consists of other notable entities like Linger Studio and Coin Plug. However, it functions distinctly from the security token consortium named Next Finance Initiative (NFI), which is a joint effort by Mirae, SK Telecom, and Hana Financial.
Ah In-sung, the lead for Mirae Asset Securities' digital assets division, acknowledged the prowess of Polygon Labs in the global blockchain space. He emphasized that through their shared technical expertise, Mirae hopes to position itself as a global forerunner in tokenized securities.
To give some context, tokenization is a concept where tangible assets - ranging from real estate and artworks to bonds and stocks - are converted into digital tokens on a blockchain.
Many well-established financial firms, such as Franklin Templeton and Hamilton Lane, boasting an impressive $823.9 billion in assets, have commenced their tokenization ventures using Polygon's platform. Moreover, last year, Singapore's Monetary Authority piloted a tokenization project named Project Guardian, which saw transactions in foreign exchange and sovereign bonds conducted on Polygon.
Recent research by Boston Consulting Group and investment house ADDX suggests that the potential for asset tokenization is monumental. By 2030, this market might skyrocket to $16.1 trillion, making up 10% of the global GDP.
According to Sandeep Nailwal, the Executive Chairman of Polygon Lab, Mirae's initiatives will significantly amplify the adoption of Web3 tech in finance.
He further commented on Mirae's forward-thinking approach, saying it ensures their readiness for the dynamic digital financial landscape. Nailwal also believes that such endeavors by Mirae will bridge the gap between South Korea's financial ecosystem and international systems.
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