Mirae Asset Securities Issues $12.5 Million of Dollar Digital Bonds Using In-House Tokenization System

Mirae Asset Securities has successfully issued digital bonds using a tokenization system developed in-house. A digital bond is a security that represents rights to a bond as digital tokens on a blockchain. The move underscores efforts to secure technology early in the token securities offering, or STO, market, which is emerging as a new battleground for brokerages.

Mirae Asset Securities said on Oct. 28 that its Hong Kong unit issued U.S. dollar-denominated digital bonds using a proprietary tokenization system, marking the first such issuance by an overseas unit of a South Korean financial company. The six-month floating-rate bonds totaled $12.5 million. Unlike bonds based on conventional electronic securities systems, the digital bonds are issued as tokens on a blockchain. That makes transaction records easier to verify transparently and automates interest payments and principal repayment at maturity, improving settlement and administrative efficiency.

Mirae Asset Securities issued 100 billion won of digital bonds in January through HSBC's Orion platform, but this time applied a tokenization system it built itself. The firm moved beyond relying on an outside financial company's blockchain platform and used its own technology and operational capabilities throughout the process, from token issuance and settlement to post-trade management.

Another feature is the use of blockchain networks such as Ethereum and Solana, which are widely used in global markets. The two networks rank second and seventh, respectively, by market capitalization in the global cryptocurrency market. By using open networks rather than a proprietary system run by a specific financial institution, the company has established a technical foundation for tokenizing other financial products and distributing them to global investors.

Mirae Asset Securities has been expanding businesses including STOs, real-world assets, or RWAs, and stablecoins following its acquisition of Digital X, formerly Korbit, this year. The company is aiming to gain an early lead ahead of the launch of South Korea's STO framework in February next year.

Lee Sun-a, Hankyung.com reporter suna@hankyung.com