South Korea’s major financial firms are stepping up efforts to enter on-chain finance with Ondo Finance, a global real-world asset tokenization platform. With related rules still delayed at home, they are moving first in overseas markets.

At the “Ondorang Bultagi” event held on September 29 at the Cheongdam Lion Club in Seoul, officials from Mirae Asset Global Investments, Meritz Securities and Hanwha Asset Management discussed ways to tokenize Korean financial products and distribute them globally.

Mirae Asset Global Investments has moved fastest, expanding the tokenization of financial products through its global subsidiary Global X. In June, the firm partnered with Ondo Finance and has been carrying out a project to tokenize its exchange-traded funds. Fifteen U.S.-listed Global X ETFs are already being distributed on-chain on the Ondo Finance platform.

Lee Chang-joo, a manager at Mirae Asset Global Investments, said the tokenization market remains small compared with traditional finance but is expected to keep growing. That was why the firm moved into the business: it did not want to fall behind and instead aimed to lead the market.

Lee added that clear U.S. regulations were a key reason the project could move forward. Mirae Asset had a U.S. local entity and a basis for pursuing the tokenization business there, he said.

Hanwha Asset Management is also preparing to tokenize domestic ETFs, though it is first building practical experience in overseas markets. Kim Yoon-sik, strategy team head in the global fixed-income division at Hanwha Asset Management, said the firm is preparing tokenization for Korean ETFs and is also participating in the tokenization of U.S. assets.

Kim said distribution will be the next key factor in the tokenization market. Geographically, demand is spreading from regions where traditional finance is less developed to more mature markets. By investor type, it is broadening from younger retail investors to older generations and institutional investors.

South Korea’s tokenization industry hinges on institutional participation

Speakers also said South Korea urgently needs a formal digital-asset framework for the domestic tokenization market to succeed. Institutional participation is essential for the market to scale, but institutions may hesitate to enter a market where regulations remain unclear.

Shim Min-seop, head of global digital assets at Meritz Securities, said the tokenization market is expanding beyond retail investors to institutional money. Those investors want products that can deliver stable returns through secure platforms.

He added that regulations assign distinct roles to asset managers, banks and securities firms. Just as asset managers create products and securities firms handle distribution in traditional finance, the tokenization market also needs infrastructure tailored to each type of financial institution.