Mirae Asset Securities' Hong Kong unit issued a U.S. dollar digital bond using a tokenisation system it developed in-house. About 9 months after its first issuance in January using an external tokenisation platform, it expanded its scope to issuance using its own technology.

Mirae Asset Securities said on Tuesday its Hong Kong unit issued the U.S. dollar digital bond locally using its self-developed tokenisation system, the first among overseas units of South Korean financial companies to do so.

The bond is a six-month U.S. dollar floating-rate product, with a total of $12.5 million sold. The Solana and Ethereum blockchain networks were used for the issuance.

A digital bond is a product that represents rights to an existing bond in the form of a digital token on a blockchain. Issuance and transaction records can be written on a blockchain, and it can be designed to automate interest payments and principal repayment at maturity, a feature that can improve the efficiency of existing bond operations.

The key to this issuance is that it used a system developed by Mirae Asset Securities' Hong Kong unit rather than an external platform. It applied its own technology and operating framework across the entire process, from product planning to token issuance and settlement, and post-issuance management.

Mirae Asset Securities previously issued a digital bond in Hong Kong in January. At the time, it raised about 100 billion won by combining 325 million Hong Kong dollars and $30 million. HSBC served as lead manager and Mirae Asset Securities' Hong Kong unit as co-lead manager, and it was issued via a private placement.

At the time, it used HSBC's proprietary tokenisation platform Orion, linked to CMU, a bond settlement infrastructure of the Hong Kong Monetary Authority. After building experience in issuing digital bonds using external infrastructure, it effectively established an issuance structure using its own system this time.

Mirae Asset Securities' Hong Kong unit is expanding the scope of its digital asset business in Hong Kong, in addition to digital bonds. In April, it received approval from the Securities and Futures Commission for a digital asset retail licence, laying the groundwork for a business offering traditional assets and digital assets together.

A Mirae Asset Securities Hong Kong unit official said, "This issuance is meaningful in that we applied our own technology and operational capabilities." The official added, "We will continue to expand tokenised products in stages."