Meritz Securities Emphasizes the Need for Use Cases in Tokenizing Won-denominated Government Bonds

Even if won-denominated government bonds are tokenized, it has been argued that attracting foreign investors solely based on yields is difficult. Sim Min-seop, head of the digital asset division at Meritz Securities, emphasized the necessity of reserves and collateral as practical use cases for tokenization during the 'Block Festa 2026' held in Yeouido, Seoul, on the 1st. He stated, 'Legal ownership and secure asset storage, along with a smooth transaction structure, are more important than token issuance.' As of September, the on-chain real assets amount to approximately $38.5 billion, while tokenized U.S. Treasury bond funds are stagnant at around $15 billion. The total value of SK Hynix ADR tokens has decreased to a quarter over the past two months. Sim pointed out that 'won-denominated bonds can attract investment demand when utilized as reserves or collateral rather than just relying on yields.' Additionally, the complexity of the settlement process was highlighted as a challenge that needs to be addressed. The Financial Services Commission is expected to announce legislative proposals for amendments to subordinate regulations related to token securities from the 2nd to the 11th of next month.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.