Token securities (STO) are expected to be a key driver in transforming existing financial market structures and creating new industries. The integration of artificial intelligence (AI), blockchain, and stablecoins is predicted to eliminate time and spatial constraints in financial transactions, leading to structural changes in capital markets.
Jeong Yoo-shin, CEO of Nexchange, made these remarks during a keynote speech on 'The Future of STO and Digital Finance' at the 2026 Aju Economic Securities Forum held at the Korea Exchange in Yeouido, Seoul, on November 2.
Jeong explained, "The history of capital markets has flowed toward the liquidity of illiquid assets. Initially, this was achieved through securitization, followed by structuring and derivatives, and now we are seeing tokenization." He added, "Tokenization is a process that replaces traditional securitization and structuring. By trading on-chain, we can reduce time and fees, and as cost-effectiveness improves, capital will flow in that direction. We are currently in the early stages of this process."
He predicted that these changes would accelerate alongside advancements in AI. "Until now, blockchain has been a technology, not an infrastructure," he emphasized. "To support a machine economy where AI agents trade with each other, we must adopt blockchain as infrastructure." He noted that when transactions occur between AI agents, they can be executed with extreme precision regarding time, space, and amounts, necessitating a system that operates 24/7 and the corresponding financial resources. He explained that on-chain systems and stablecoins could support such transactions.
The global financial market has already entered the competition for tokenization. According to Jeong's presentation, the size of real-world assets (RWA) excluding stablecoins surged from approximately $8 billion in early 2024 to $38.8 billion by September of this year, a nearly fivefold increase. In the United States, the tokenization of traditional securities such as government bonds, money market funds (MMFs), and stocks is driving market expansion. In contrast, South Korea has started with fractional investments in unstructured assets like music copyrights, artworks, and real estate.
Jeong assessed that this difference could present new opportunities for the domestic financial market. He stated, "The tokenization of structured securities does not create new industries; it merely enhances and expands existing markets. The real potential for new industries lies in unstructured securities." He continued, "As illiquid assets are transformed into active assets through the process of liquidity, they attract people, investments, and revenue models, which leads to employment and growth."
He also highlighted the importance of exchanges, stating, "It is crucial to have not only an issuance market but also a distribution market." He explained, "If there is only an issuance market, investors may find themselves unable to sell their purchases later, leading to a one-time transaction rather than a sustainable market." Furthermore, he emphasized that for active trading in the distribution market, a price discovery function is essential. "As environments and variables change, the fair value of assets also shifts, necessitating regular generation and analysis of diverse information and data by analysts."
Jeong urged, "We should not be too afraid of new innovations. It is important to have many test markets to gain experience through multiple trials and errors at the same time." He concluded, "If Korea can develop both structured and unstructured securities in a balanced manner, it could secure a significant position in the global tokenization market."
* This article has been translated by AI.
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