Advancing Tokenization in Finance
Polygon Labs will serve as a technical consultant for The Mirae Asset Security Token Working Group, a consortium dedicated to establishing the infrastructure for issuing, exchanging, and distributing tokenized securities. This initiative represents a significant step towards the digitization of traditional financial assets.
Key Partnerships
The Mirae Asset Security Token Working Group consists of several prominent companies, including Linger Studio and Coin Plug. It operates independently from other security token consortiums such as Mirae, Hana Financial, and SK Telecom’s Next Finance Initiative (NFI).
Global Leadership in Tokenized Securities
“Polygon Labs is a leading global blockchain technology development company that is innovating throughout all aspects of Web3. Through technical collaboration with Polygon Labs, Mirae Asset Securities aims to establish global leadership in the field of tokenized securities,” said Ahn In-sung, head of the digital assets division at Mirae Asset Securities.
Understanding Tokenization
Tokenization involves converting real-world assets, such as real estate, bonds, fine art, and equities, into digital tokens on a blockchain, making them more accessible and tradable.
Industry Adoption
Several major players in the traditional finance sector, including Franklin Templeton and Hamilton Lane, have already initiated tokenization projects on Polygon. The Monetary Authority of Singapore’s Project Guardian, an experimental tokenization initiative, executed foreign exchange and sovereign bond transactions on the Polygon network last year.
Growth Potential
According to Boston Consulting Group and investment firm ADDX, asset tokenization is poised for significant growth, with the business opportunity expected to increase 50 times to $16.1 trillion by 2030, accounting for 10% of the global gross domestic product (GDP).
Boosting Web3 Adoption
Sandeep Nailwal, Executive Chairman of Polygon Labs, anticipates that Mirae’s efforts will play a crucial role in driving the adoption of Web3 technologies in the financial industry. He stated, “Mirae is a great example of a progressive, forward-looking company that aims to stay up to date with the constantly evolving world of digital finance. Its foray into tokenization will undoubtedly help accelerate the mass adoption of web3 among other financial institutions.”
He added, “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.”
