{"id":23720,"date":"2023-06-16T21:43:43","date_gmt":"2023-06-17T01:43:43","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/s-korean-sto-market-may-be-worth-287b-by-2030\/"},"modified":"2023-06-16T21:43:45","modified_gmt":"2023-06-17T01:43:45","slug":"s-korean-sto-market-may-be-worth-287b-by-2030","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=23720","title":{"rendered":"S Korean STO Market \u2018May Be Worth $287B by 2030\u2019"},"content":{"rendered":"
\n

South Korea\u2019s financial industry thinks the nation\u2019s security token offerings (STO) market could be worth $287 billion by 2030, with the biggest commercial banks in the country \u201clining up\u201d to get involved.<\/p>\n

Per EDaily, the Hana Financial Group\u2019s Management Research Institute predicted that the domestic security token market will grow to almost $27 billion next year.<\/p>\n

The group predicted rapid growth to follow in the remainder of the decade.<\/p>\n

Banks have been responding to the government\u2019s recent policy announcements on the matter of STOs.<\/p>\n

All forms of domestic coin issuance were outlawed in early 2018.<\/p>\n

But the government last year pledged to relax the rules, particularly for STO projects.<\/p>\n

Regulated financial firms will be allowed to offer STO products with relative freedom.<\/p>\n

And the media outlet said industry insiders expect \u201cthe pace of domestic financial companies\u2019 entry into the market\u201d to \u201caccelerate quickly.\u201d<\/p>\n

Seoul wants to test the STO waters in a regulatory sandbox.<\/p>\n

In the sandbox, selected firms will be able to \u201cissue and distribute\u201d tokenized securities under the supervision of the Financial Services Commission (FSC).<\/p>\n

But banks are anticipating a firmer green light, and have formed an STO \u201calliance.\u201d<\/p>\n

The alliance was co-founded by one of the nation\u2019s biggest and most crypto-keen banks, Nonghyup (NH) Bank, along with the smaller nationwide bank Suhyup Bank and the regional bank Jeonbuk Bank.<\/p>\n

But the alliance\u2019s membership doubled on June 15, when three of the biggest banks in the nation joined \u2013 namely the Industrial Bank of Korea, Shinhan Bank, and Woori Bank.<\/p>\n

South Korean Security Tokens \u2013 Could They Take Off?<\/h2>\n

Banks are anticipating an explosion in STOs, with tokenized \u201creal estate, artwork, and music copyright\u201d projects set to debut.<\/p>\n

At least one tokenized music copyright firm has already joined the FSC\u2019s sandbox.<\/p>\n

But some have warned that banks may have to wait until as late as 2025 before they can access the STO market.<\/p>\n

Regulators said they had been forced to push back the rollout of relevant legislation.<\/p>\n

An unnamed regulatory official said that the \u201csubmission of the relevant legal amendment\u201d had already been \u201cdelayed a little,\u201d meaning that STO legalization could come into force \u201cat the end of next year at the earliest.\u201d<\/p>\n

<\/oembed><\/figure>\n

Earlier this year, South Korean media outlets reported that Shinhan and another major banking group, Kookmin, had already begun developing STO trading platforms.<\/p>\n<\/p><\/div>\n