Shinhan Asset Management Deputy Head Emphasizes Need for Dollar Stablecoins in Institutional Tokenization Products

Jeong Se-hyun, the Deputy Head of Digital Asset Business Development at Shinhan Asset Management, identified the demand for dollar stablecoins as a key driver for the tokenization of institutional financial products. At the Solana Summit held on September 30 at the Korea Chamber of Commerce and Industry in Yeouido, Seoul, he explained that "what institutions need to adopt tokenization is demand." The market size for tokenized U.S. Treasury bonds has increased 24-fold from approximately $620 million three years ago to $15 billion currently. Citing BlackRock's tokenized fund 'BUIDL' as an example, he stated that dollar stablecoin funding is one of the main demand sources. The current market size for dollar stablecoins is about $310 billion, and Citigroup forecasts it will expand to $1.9 trillion by 2030. However, he emphasized that the rapid inflow and outflow of stablecoin funds depending on market conditions makes it difficult to ensure sustained demand. He added that asset management firms need to have institutional and business backing to launch tokenized products. He explained that tokenizing domestic financial products would be linked to the liquidity of dollar stablecoins, and that tokenization should proceed after confirming the institutional basis based on demand.

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