Mirae Asset Bets Big on Digital Assets, Targets 150 Trillion Won Business

Mirae Asset Group is significantly expanding its focus on digital assets, aiming to establish it as a cornerstone of its long-term growth strategy. Chairman and global strategy officer Park Hyeon-joo revealed plans to create a digital asset business valued at 150 trillion won ($108 billion) by capitalizing on the group's approximately 1.5 trillion won in customer assets.

The central focus of this strategy is Digital X, the South Korean platform operating Korbit, a leading cryptocurrency exchange. Park introduced this ambitious plan to Digital X employees during a gathering at the Four Seasons Hotel Seoul on August 26, marking his first direct interaction with the team since Mirae Asset's acquisition of management control over the exchange.

Park emphasized Digital X's pivotal role in the company's larger "Mirae Asset 3.0" strategy, signaling a shift from traditional securities and asset management to blockchain-based finance and digital assets. The group intends to develop Digital X's operations across four main domains: cryptocurrencies, stablecoins, real-world assets (RWA), and security token offerings (STOs).

Additionally, the company plans to explore the tokenization of tangible assets like gold, silver, and electricity, aiming to merge traditional financial assets with blockchain technology to create new investment products and services. Park also underscored the development of an "on-chain finance" ecosystem, envisioning Digital X as a bridge connecting the group's existing financial ventures with the rapidly evolving digital asset landscape.

The strategy suggests that Mirae Asset views Digital X as a platform for expanding its financial presence in the burgeoning digital asset market. Capital expansion is on the horizon, with Digital X having already approved a 50 billion won increase in third-party allotment shares, with Mirae Asset Consulting set to participate in the newly issued shares.

Park hinted at the possibility of a further capital increase of 200 billion to 300 billion won in the first quarter of the following year, contingent on the company's performance. The digital asset segment is targeted for profitability next year, with plans to bolster Digital X's financial foundation, broaden its product range, and grow its customer base.

Park cautioned against speculative behavior in digital assets and cautioned against crypto debt investing, where investors leverage funds to purchase cryptocurrencies. Instead, he advocated for diversified investment opportunities across a wider array of assets to mitigate risks. Reflecting on South Korea's stock market and corporate investments, Park attributed recent market volatility to foreign hedge fund rebalancing rather than leveraged ETFs.

Regarding shareholder returns, he critiqued the focus on high dividends by companies like Samsung Electronics, arguing for capital retention and aggressive investment in future growth to enhance competitiveness. Park voiced optimism about South Korea's space technology sector, citing SpaceX as a pioneering entity that invested strategically in data centers during the era of low-cost graphics processing units, anticipating future growth and profitability driven by global technology corporations.

Consequently, Mirae Asset's digital asset strategy extends beyond mere cryptocurrency trading, aiming to construct a comprehensive financial ecosystem encompassing crypto, stablecoins, RWAs, and STOs. The success of Digital X in evolving from a cryptocurrency exchange operator into a broader digital finance platform could serve as a crucial litmus test for Mirae Asset's "3.0" strategy.