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Mirae's $500 Billion Asset Push: Utilizing Polygon Labs for Securities Tokenization

Sep 7, 2023 at 12:25 pm

Mirae Asset Securities, a financial giant overseeing assets worth over $500 billion, has embarked on a game-changing journey by partnering with Polygon Labs, a leading Ethereum scaling solution. This dynamic collaboration aims to revolutionize how securities are tokenized in the financial industry, promoting the widespread use of Web3 technologies.

The Mirae Asset Security Token Working Group, with technical support from Polygon Labs, is committed to constructing the necessary infrastructure for creating, trading, and distributing tokenized securities. Key partners in this effort include Linger Studio and Coin Plug. It's crucial to emphasize that this partnership operates independently from Mirae, Hana Financial, and SK Telecom's security token consortium, Next Finance Initiative (NFI).

Ahn In-sung, the head of the digital assets division at Mirae Asset Securities, exudes confidence in this venture, stating, "Polygon Labs is a leading global blockchain technology development company that is pushing the boundaries of innovation across all facets of Web3. Through our technical partnership with Polygon Labs, Mirae Asset Securities aims to establish worldwide leadership in the realm of tokenized securities."

Tokenization involves converting tangible assets like real estate, bonds, artwork, and equities into digital tokens on a blockchain platform. Pioneers in traditional finance, such as Franklin Templeton and Hamilton Lane, a distinguished investment firm managing assets exceeding $823.9 billion, have already launched tokenization projects on the Polygon network. Additionally, the Monetary Authority of Singapore's experimental tokenization project, Project Guardian, executed foreign exchange and sovereign bond transactions on Polygon last year.

According to projections by Boston Consulting Group and investment firm ADDX, the business potential offered by asset tokenization is expected to grow fifty-fold, reaching $16.1 trillion by 2030, accounting for 10% of the global gross domestic product.

Sandeep Nailwal, the Executive Chairman of Polygon Labs, envisions that Mirae's efforts will play a crucial role in driving the adoption of Web3 technologies within the financial sector. He pointed out, "Mirae serves as an excellent example of a forward-thinking company that strives to stay at the forefront of the ever-evolving realm of digital finance. Its foray into tokenization will undoubtedly accelerate the widespread adoption of web3 among various financial institutions. Simultaneously, Mirae’s initiatives will also make a significant contribution to establishing interoperability between South Korea’s domestic financial systems and their international counterparts."

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