Advancing Tokenized Securities on Polygon
Polygon Labs, serving as a technical consultant for The Mirae Asset Security Token Working Group, will be responsible for constructing the essential infrastructure to facilitate the issuance and trading of tokenized securities on Polygon. Polygon is a layer 2 scaling solution designed for Ethereum. This partnership will enable the transformation of real-world assets such as real estate, bonds, art, and equities into digital tokens residing on a blockchain.
The consortium, which operates independently of Mirae Asset, consists of various entities including Linger Studio and Coin Plug. Notably, Hana Financial and SK Telecom’s Next Finance Initiative (NFI), with a particular focus on security tokens, are also managed as separate entities.
“Through technical collaboration with Polygon Labs, Mirae Asset Securities aims to establish global leadership in the field of tokenized securities,”
– Ahn In-sung, Head of the Digital Assets Division at Mirae Asset Securities
Web3 Technology Adoption and Interoperability
Sandeep Nailwal, the Executive Chairman of Polygon Labs, anticipates that Mirae Asset Securities’ initiatives will play a pivotal role in accelerating the widespread adoption of Web3 technologies within the financial sector. Additionally, he highlighted the potential for Mirae’s efforts to establish interoperability between South Korea’s domestic financial systems and their international counterparts.
“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.”
Rise of Tokenized Assets
The global movement towards asset tokenization is gaining significant momentum. Major financial institutions like Franklin Templeton and Hamilton Lane have already initiated tokenization projects on the Polygon platform. Moreover, the Monetary Authority of Singapore’s experimental tokenization initiative, Project Guardian, successfully conducted foreign exchange and sovereign bond transactions on Polygon in the previous year.
The government of El Salvador has also expressed interest in issuing tokenized Bitcoin bonds on the Liquid Bitcoin sidechain, though these bonds have not yet materialized.
Even Michael Saylor, co-founder of MicroStrategy and a prominent Bitcoin maximalist, has shown support for the idea. During an interview at Bitcoin 2023 Miami, he suggested that the technology could potentially be used to “tokenize all of the stocks and ETFs trading on NASDAQ.”
A dashboard provided by Dune Analytics estimates that tokenized public securities issued by Franklin Templeton and other entities have a total market capitalization of $343 million.
According to projections by Boston Consulting Group and ADDX, the business opportunity presented by asset tokenization is poised to experience dramatic growth, potentially reaching a staggering $16.1 trillion by 2030. This figure would be equivalent to 10% of the global GDP.
