Mirae Asset Securities, the largest financial group in South Korea with over $500 billion in assets under management, announced on Thursday that it is collaborating with Polygon Labs, an Ethereum scaling platform, to advance tokenization in finance and promote the adoption of Web3 technologies.

Polygon Labs will serve as a technical consultant for The Mirae Asset Security Token Working Group, which aims to develop infrastructure for issuing, exchanging, and distributing tokenized securities, according to a press release shared with CoinDesk.

The working group consists of various companies, including Linger Studio and Coin Plug, and 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, stated, “Polygon Labs is a leading global blockchain technology development company that is innovating in all aspects of Web3. Through technical collaboration with Polygon Labs, Mirae Asset Securities aims to establish global leadership in the field of tokenized securities.”

Tokenization involves converting real-world assets, such as real estate, bonds, fine art, and equities, into digital tokens on a blockchain.

Several traditional finance giants, including Franklin Templeton and Hamilton Lane, have already initiated tokenization projects on Polygon. The Monetary Authority of Singapore’s experimental tokenization initiative, Project Guardian, conducted foreign exchange and sovereign bond transactions on Polygon last year.

According to Boston Consulting Group and investment firm ADDX, the business opportunity of asset tokenization is expected to increase 50 times to $16.1 trillion by 2030, accounting for 10% of the global gross domestic product.

Sandeep Nailwal, the Executive Chairman of Polygon Labs, believes that Mirae’s efforts will drive the adoption of Web3 technologies in the financial industry. He stated, “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.”

Nailwal also added, “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.”