The South Korean security tokens market could be valued at $287 billion by 2030.
The financial industry in South Korea predicts that the national security token offerings (STO) market could grow to $287 billion by 2030. The biggest commercial banks in the country are said to be eager to participate, with the Hana Financial Group’s Management Research Institute predicting that the domestic security token market will grow to almost $27 billion next year, with rapid growth to follow in the remainder of the decade. Banks are responding to the government’s recent policy announcements on STOs, which were previously outlawed in early 2018. However, the government has pledged to relax the rules, particularly for STO projects, and regulated financial firms will be allowed to offer STO products with relative freedom. Seoul wants to test the STO waters in a regulatory sandbox, where selected firms will be able to “issue and distribute” tokenized securities under the supervision of the Financial Services Commission (FSC). Banks are anticipating a firmer green light, and have formed an STO “alliance,” with tokenized real estate, artwork, and music copyright projects set to debut. However, some have warned that banks may have to wait until as late as 2025 before they can access the STO market, due to the delayed rollout of relevant legislation.
South Korean Security Tokens – Could They Take Off?
Earlier this year, South Korean media outlets reported that Shinhan and another major banking group, Kookmin, had already begun developing STO trading platforms.