This article has been republished with permission from Binance News.
According to CoinDesk, South Korea’s largest financial group, Mirae Asset Securities, is collaborating with Ethereum scaling platform Polygon Labs to advance tokenization within finance and promote the adoption of Web3 technologies. Polygon Labs will serve as a technical consultant in The Mirae Asset Security Token Working Group, which aims to develop infrastructure for issuing, exchanging, and distributing tokenized securities. The group operates independently from Mirae, Hana Financial, and SK Telecom’s security token consortium, Next Finance Initiative (NFI), and includes other companies such as Linger Studio and Coin Plug.
Tokenization involves converting real-world assets, like real estate, bonds, fine art, and equities, into digital tokens on a blockchain. Several traditional finance giants, including Franklin Templeton and Hamilton Lane, have already initiated tokenization projects on Polygon. Last year, the Monetary Authority of Singapore’s experimental tokenization initiative, Project Guardian, executed foreign exchange and sovereign bond transactions on Polygon. According to Boston Consulting Group and investment firm ADDX, asset tokenization is likely to grow 50 times to $16.1 trillion by 2030, accounting for 10% of the global gross domestic product.
Polygon Lab’s Executive Chairman Sandeep Nailwal believes that Mirae’s efforts will help boost the adoption of Web3 technologies in the financial industry and contribute to establishing interoperability between South Korea’s domestic financial systems and their foreign counterparts.