In a significant move for the cryptocurrency landscape in South Korea, Hanwha Asset Management has partnered with the Jito Foundation to develop infrastructure for liquidity staking Exchange-Traded Products (ETPs). This collaboration aims to integrate JitoSOL into regulated financial offerings, emphasizing compliance and technical integration.
The partnership was confirmed as Hanwha prepares to establish the necessary infrastructure for products linked to JitoSOL. The firms are focused on building systems that align with South Korea”s evolving digital asset regulations. Regulatory compliance is crucial, and both companies are committed to creating a compliant market framework.
Executives from Hanwha highlighted the advantages of JitoSOL, noting its potential for strong returns and liquidity. Choi Young-jin, a representative from Hanwha, remarked that JitoSOL may be suitable for long-term retirement investment products. This indicates a strategic vision towards integrating digital assets into traditional finance.
The collaboration will also involve validating custody systems and establishing risk frameworks essential for ETP approval. The partners plan to ensure that their offerings meet local regulatory requirements while exploring yield mechanisms tailored to domestic conditions. Their work will include testing how rewards can function within regulated environments, which is vital for future product filings.
Technical integration efforts will focus on connecting JitoSOL with ETP systems. The teams will streamline data flows for compliance and work closely with blockchain teams to ensure reliability. They aim to validate the operational demands necessary for continuous staking rewards, leveraging a dual yield structure that combines staking income with Miner Extractable Value (MEV) rewards.
This initiative reflects a broader trend in the global market toward ETPs tied to staking assets. Similar products have been launched in Europe, with companies like 21Shares and VanEck exploring opportunities in regulated environments. The rise in demand for regulated staking exposure is evident, and Hanwha and Jito Foundation are positioning themselves to meet this growing interest.
Hanwha Asset Management oversees trillions of won in assets and is actively expanding its digital asset initiatives. The partnership with Jito Foundation is viewed as a long-term strategy, anticipating that regulatory clarity will support the launch of new products. However, the current landscape in South Korea remains complex, with ongoing discussions regarding the Digital Asset Basic Act and licensing rules, which could impact the timeline for product approvals.
As the regulatory framework develops, the collaboration between Hanwha and Jito Foundation is poised to pave the way for innovative financial products that bridge traditional finance and the growing world of digital assets.
