The largest financial firm in South Korea, Mirae Asset Securities, announced on Thursday that it is collaborating with Ethereum scaling platform Polygon Labs to improve tokenization in finance and accelerate the adoption of Web3 technologies. Mirae Asset Securities manages more than $500 billion in assets.
According to a recent news release from the asset management, Polygon Labs will serve as a technical consultant for The Mirae Asset Security Token Working Group, which is developing infrastructure to issue, trade, and distribute tokenized securities.
The organisation operates separately from Mirae, Hana Financial, and SK Telecom’s security token consortium, Next Finance Initiative (NFI), which also comprises numerous other businesses, such as Linger Studio and Coin Plug.
“Polygon Labs is a top worldwide blockchain technology development firm that is pioneering innovation across the whole Web3 space. Ahn In-sung, head of Mirae Asset Securities’ division for digital assets, stated, “Mirai Asset Securities seeks to achieve worldwide leadership in the field of tokenized securities through technological partnership with Polygon Labs.
Real-world assets like stocks, bonds, fine art, and real estate are tokenized by turning them into digital tokens on a blockchain.
On Polygon, a number of established financial behemoths have already started tokenization projects, including Franklin Templeton and Hamilton Lane, a renowned investment firm with approximately $823.9 billion in assets under control. Project Guardian, an experimental tokenization effort from the Monetary Authority of Singapore, carried out foreign exchange and sovereign bond transactions on Polygon last year.
Asset tokenization, as a commercial potential, is predicted to grow 50 times to $16.1 trillion by 2030, accounting for 10% of the world’s gross domestic product, according to Boston Consulting Group and investment firm ADDX.
Sandeep Nailwal, the executive chairman of Polygon Lab, anticipates that Mirae’s initiatives will accelerate the use of Web3 technology in the banking sector.
“Mirae is a fantastic illustration of a proactive, forward-thinking business that strives to keep up with the rapidly changing landscape of digital finance. Its venture into tokenization will likely hasten the widespread adoption of web3 by other financial institutions, according to Nailwal.
“At the same time, Mirae’s initiatives will also greatly contribute to establishing interoperability between South Korea’s domestic financial systems and their foreign counterparts,” the official continued.