Art STO
By 2030, the domestic STO (Security Token Offering) market is projected to grow to 10 times the size of the current domestic semiconductor market.
STO, or Security Token Offering, refers to a system where individuals or companies issue security tokens (ST) linked to tangible assets to raise necessary funds. Security tokens are blockchain-based virtual assets that represent ownership or rights and are designed to protect investor rights. Unlike traditional coins like Bitcoin or Ethereum, which function as digital currencies on blockchain networks, STOs enable fractional investment in assets such as real estate, artwork, or music copyrights through security tokens, enhancing asset liquidity. This approach allows investors to reduce financial burdens and facilitates easier investment.
One of the key advantages of security tokens is their convenience in issuance and trading compared to traditional securities. They offer lower transaction fees, faster trades, and the ability for 24/7 trading, making them highly appealing in modern markets. Experts predict rapid growth in the STO market, driven by these benefits. Furthermore, security tokens are subject to stringent financial regulations under capital market laws. This includes requirements such as reporting changes in the issuer’s management, periodic financial disclosures, and external audits to ensure investor protection. These regulations, applied similarly to traditional securities, make STOs a comparatively safer investment option than cryptocurrencies.
(Press Release)
The Investor Protection Center under Upbit, a cryptocurrency exchange, cited data from global management consulting firm Boston Consulting Group (BCG), forecasting that the domestic security token (STO) market will expand to 370 trillion KRW by 2030. The report highlights that the legalization of security tokens will enhance market trust, attracting investor participation and boosting technological stability, ultimately positioning STOs as a new investment avenue.
Predictions also suggest that the domestic STO market could be composed of 70% financial assets and 30% non-financial assets. Financial assets encompass stocks, real estate, funds, and bonds, while non-financial assets include valuables, contracts, leases, licenses, goodwill, and marketing assets.
The Upbit Investor Protection Center stated, "We anticipate market growth through the tokenization of tangible assets and various intangible assets. Domestic major securities firms have already been preparing for the formation of the STO market for a long time, including the establishment of consortia."
