One of Korea’s largest financial groups, Mirae Asset Securities, is collaborating with Polygon to offer its clients a dedicated infrastructure for the investment of securities in the form of security tokens.
The partnership involves Polygon’s inclusion as a “technical advisor” in the “Mirae Asset Security Token Working Group” consortium to promote the use of blockchain and asset tokenization.
In recent months, many other companies such as Hamilton Lane and institutions such as the Monetary Authority of Singapore (MAS) have chosen Ethereum’s layer-2 network to explore new investment solutions in web3.
Full details below.
Polygon and security tokenization: partnership with Mirae Asset Securities to promote the use of security tokens
Mirae Asset Securities, one of South Korea‘s largest financial groups with more than $500 billion in assets under management, has partnered with Polygon to create a platform dedicated to the issuance of cryptographic tokens that capture the value of certain investment securities.
In detail, Polygon will serve as a “technical advisor” to the “Mirae Asset Security Token Working Group” consortium that is focusing on developing an infrastructure to issue, exchange and distribute tokenized securities.
Within this consortium are other companies such as Linger Studio and Coin Plug. There are also outside players in this objective such as SK telecom and Hana Financial Group.
The area of tokenization of securities is growing more and more both in popularity and investment by financial institutions and cryptographic networks that specialize in issuing tokens.
In this regard, the well-known Bank of America, which manages an AUM of $1.46 trillion, recently stated that this market could reach a whopping $16 trillion in the next 15 years.
Now Mirare Asset Securities plans to conduct joint research with Polygon Labs, leveraging signature professionalism and expertise in zero knowledge and decentralized ID to promote a dedicated platform for tokenized securities.
In addition, the companies aim to collaborate on various initiatives such as helping the growth of domestic and international tokenized securities networks and ecosystems, organizing events to improve brand awareness, and more.
Sandeep Nailwal, co founder of Polygon Lasb, commented on the collaboration with the Korean institute as follows:
“Mirae is a great example of a progressive and forward-thinking company that aims to stay up-to-date with the ever-evolving world of digital finance. Its foray into tokenization will no doubt help accelerate the mass adoption of web3 among other financial institutions.
At the same time, Mirae’s initiatives will also greatly help establish interoperability between South Korea’s domestic financial systems and their foreign counterparts.”
Other companies also invest in asset tokenization with Polygon
Since the beginning of the year, many asset management companies have partnered with Polygon to develop new asset tokenization solutions.
In January, Hamilton Lane, a U.S. investment and advisory firm with $823.9 billion in assets under management, allowed its investors to access its “Equity Opportunities Fund V” through the use of cryptographic tokens that capture the values of the securities in that fund.
All of course managed within Polygon’s cryptographic infrastructure, which has engaged in the issuance, transfer and management of digital assets, with low fees and high transaction processing speed.
Investors can enter the financial product, which has historically performed with a double-digit gross internal rate of return, through a Securitize feeder fund with minimum investments reduced from an average of $5 million to just $20,000.
After only 4 months, Hamilton Lane itself also made the “Senior Credit Opportunities Fund” (SCOPE) accessible with the help of Ethereum’s layer-2 network and Securitize, which again offered a feeder fund for direct retail investment.
In April this year, Franklin Templeton Institution also pushed into tokenization by launching the “Franklin OnChain U.S. Government Money Fund” (FOBXX), which is the first registered mutual fund in the United States to process and manage equity ownership using a public-facing blockchain.
This is not the end of the story because Polygon is also involved in “Project Guardian,” which is an asset tokenization experiment spearheaded by the Monetary Authority of Singapore (MAS) in which several financial institutions are also participating.
Project Guardian in November last year successfully executed foreign exchange and sovereign bond transactions by leveraging the web3 capabilities offered by Polygon’s infrastructure.
Regarding the strong development of this emerging trend of using cryptographic tokens as investment vehicles for private entities and institutions via networks on blockchain, Polygon Labs head of institutional capital Colin Butler commented as follows:
“The tokenization of private funds is a huge step forward for investors and fund managers-a broader pool of investors attracted by greater opportunity and disintermediation-but also for a greater understanding that the practical applications of blockchain will make a marked difference in democratizing financial opportunities.
Polygon makes these asset classes accessible, secure and scalable, and frankly, the Polygon network is being built to become the home of global financial markets.”