Mirae Asset Securities, an investment firm and brokerage with more than $500 billion in AUM, has chosen Polygon to pursue digital securities or asset tokenization.
According to a note from Mirae, the Mirae Asset Security Token Working Group is working to build the infrastructure for security tokens. This includes the tech stack to issue, manage, and distribute digital securities.
Mirae is working with other firms on the project, including Linger Studio and Coin Plug, according to the firm.
An MOU has been signed with Polygon Labs to pursue a tokenization ecosystem. The company states that Mirae Asset Securities already claims over $3 billion worth of equity capital in overseas operations — the largest amount among any other South Korean brokerage firms.
Mirae pointed to the fact that several other asset managers are working with Polygon, including Hamilton Lane and Franklin Templeton.
At the same time, Polygon is participating in “Project Guardian,” an experiment in asset tokenization organized by the Monetary Authority of Singapore (MAS).
Project Guardian has already successfully executed foreign exchange and sovereign bond transactions on Polygon.
Ahn In-sung, the Head of the Digital Division at Mirae Asset Securities, said that Polygon Labs is innovating all aspects of Web3 and they aim to establish global leadership in the realm of tokenized securities.
“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,” stated Sandeep Nailwal, Polygon Labs’ Executive Chairman. “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.”
Most industry insiders as well as policymakers expect all securities to become digital at some point in the future. Yet, while this may be inevitable, change takes time compliance issues remain, and established financial firms have been slow to adapt. Additionally, technology must be able to handle enterprise-level requirements which means robust performance including bulletproof cyber security protocols – if Web3 services will be successful in replacing legacy systems.