BitcoinWorld Liquid Staking ETP Breakthrough: Hanwha Asset Management’s Strategic Partnership with Jito Foundation Transforms Crypto Investment Landscape SEOUL, South Korea – February 2025 – In a significant development for regulated cryptocurrency investment products, Hanwha Asset Management has announced a strategic partnership with the Jito Foundation to develop infrastructure for liquid staking exchange-traded products (ETPs). This collaboration represents a major step toward establishing regulated financial products in South Korea’s evolving digital asset market, following the successful listing of the JSOL ETP on Euronext last month. The partnership builds upon Hanwha’s existing memorandum of understanding with the Solana Foundation, signed on January 23, 2025, creating a comprehensive framework for institutional-grade crypto investment vehicles. Liquid Staking ETP Infrastructure Development Hanwha Asset Management and the Jito Foundation are collaborating to establish the technical and regulatory groundwork necessary for designing regulated financial products in South Korea. This partnership specifically focuses on creating infrastructure for liquid staking exchange-traded products, which allow investors to participate in blockchain validation while maintaining liquidity. According to Yonhap News, the collaboration aims to develop products similar to the JSOL ETP that Euronext listed recently. The initiative represents a strategic move to bridge traditional finance with decentralized blockchain ecosystems. Liquid staking has emerged as a crucial innovation in the cryptocurrency space, enabling token holders to stake their assets for network security while receiving liquid tokens representing their staked position. Consequently, investors can participate in network consensus mechanisms without locking up their capital. This development is particularly significant for institutional investors who require both yield generation and liquidity management capabilities. The partnership between a traditional asset manager and a blockchain foundation demonstrates the growing convergence between conventional finance and decentralized technologies. Regulatory Framework and Market Context South Korea’s financial regulators have been developing comprehensive frameworks for digital asset management since the Virtual Asset User Protection Act implementation in 2024. The Financial Services Commission (FSC) has established guidelines for cryptocurrency custody, trading, and investment products. Furthermore, the Korea Financial Intelligence Unit (KoFIU) monitors compliance with anti-money laundering regulations. This regulatory environment creates both challenges and opportunities for traditional financial institutions entering the digital asset space. The partnership follows several key developments in South Korea’s financial sector: January 2024: Implementation of the Virtual Asset User Protection Act March 2024: Financial Services Commission guidelines for institutional crypto custody September 2024: First approval for security token offerings by Korean exchanges December 2024: JSOL ETP listing on Euronext Amsterdam January 2025: Hanwha-Solana Foundation MOU signing This regulatory progression enables traditional asset managers like Hanwha to explore digital asset products within established compliance frameworks. The collaboration with Jito Foundation specifically addresses technical requirements for liquid staking mechanisms while ensuring regulatory alignment with South Korean financial laws. Technical Architecture and Implementation The partnership will develop infrastructure supporting multiple technical components essential for liquid staking ETPs. These include validator node management, token issuance mechanisms, and redemption processes. Additionally, the infrastructure must integrate with existing financial systems for settlement, custody, and reporting. The Jito Foundation brings specialized expertise in Solana network validation and liquid staking protocols, while Hanwha contributes traditional financial product structuring and regulatory compliance knowledge. Key technical considerations for the partnership include: Component Responsibility Description Validator Network Jito Foundation Solana validation infrastructure and node operations Token Standards Joint Development ERC-20 compatible token representing staked positions Regulatory Compliance Hanwha Asset Management Financial reporting, KYC/AML integration, audit trails Custody Solutions Joint Development Multi-signature wallets, institutional security protocols Market Making Hanwha Asset Management Liquidity provision, exchange connectivity, pricing mechanisms Market Impact and Institutional Adoption This partnership signals accelerating institutional adoption of blockchain-based financial products in Asia’s fourth-largest economy. South Korea represents one of the world’s most active cryptocurrency markets, with approximately 6 million registered exchange users according to 2024 Financial Supervisory Service data. The development of regulated ETPs could channel significant institutional capital into blockchain networks while providing retail investors with familiar investment vehicles. Moreover, the collaboration establishes a precedent for other traditional financial institutions considering digital asset product offerings. The liquid staking ETP market has demonstrated substantial growth globally, with total value locked in liquid staking protocols exceeding $50 billion across all blockchain networks as of January 2025. Solana’s liquid staking ecosystem, supported by protocols like Jito, Marinade Finance, and Lido, has grown particularly rapidly. The network’s high throughput and low transaction costs make it suitable for institutional-scale financial products. Consequently, Hanwha’s partnership with both Solana and Jito foundations positions the asset manager at the intersection of technological innovation and financial product development. Comparative Analysis with European Models The JSOL ETP listed on Euronext provides a relevant comparison for understanding potential product structures. This European product offers exposure to staked Solana tokens while trading on regulated exchanges. Investors receive daily staking rewards minus management fees, typically ranging from 1-2% annually. The product structure includes physical backing by actual Solana tokens held in regulated custody, with staking operations managed by licensed validators. This model likely informs Hanwha’s approach to South Korean product development, though adaptations will address local regulatory requirements and market preferences. European liquid staking ETPs have demonstrated several key advantages: Regulatory clarity: Operating within established securities frameworks Tax efficiency: Clear treatment of staking rewards as income Accessibility: Available through traditional brokerage accounts Transparency: Daily NAV calculations and regular reporting Security: Institutional-grade custody and insurance coverage These characteristics make liquid staking ETPs particularly attractive to pension funds, insurance companies, and other institutional investors with strict compliance requirements. The partnership between Hanwha and Jito aims to replicate these benefits within South Korea’s regulatory environment while leveraging Solana’s technical capabilities. Future Developments and Industry Implications The Hanwha-Jito partnership represents part of a broader trend of traditional financial institutions entering the digital asset space through strategic collaborations. Other Korean financial groups, including KB Financial Group and Shinhan Financial Group, have announced similar blockchain initiatives in recent months. This competitive landscape encourages innovation while ensuring regulatory compliance remains paramount. Additionally, the partnership may influence regulatory development, as successful implementation could inform future policy decisions regarding digital asset products. Potential future developments from this partnership include: Expansion to other blockchain networks beyond Solana Development of multi-asset staking ETPs Integration with retirement and pension products Cross-border listing opportunities with other Asian exchanges Development of derivative products based on staking yields These developments could significantly expand access to blockchain investment opportunities while maintaining the investor protections associated with regulated financial products. The partnership’s success may also encourage other Asian financial centers to develop similar frameworks, potentially creating regional standards for digital asset investment vehicles. Conclusion The strategic partnership between Hanwha Asset Management and the Jito Foundation represents a milestone in the development of regulated liquid staking ETP infrastructure in South Korea. This collaboration bridges traditional finance and blockchain technology while addressing regulatory requirements and technical challenges. The initiative builds upon Hanwha’s existing relationship with the Solana Foundation and follows the successful European listing of JSOL ETP products. As institutional adoption of digital assets accelerates globally, such partnerships provide essential frameworks for secure, compliant, and accessible investment vehicles. The liquid staking ETP development signals South Korea’s continued leadership in integrating innovative financial technologies within established regulatory systems. FAQs Q1: What are liquid staking exchange-traded products (ETPs)? Liquid staking ETPs are regulated investment vehicles that provide exposure to staked cryptocurrency tokens while maintaining liquidity through exchange trading. These products allow investors to participate in blockchain network validation and earn staking rewards without locking up their capital in technical staking processes. Q2: Why is Hanwha Asset Management partnering with the Jito Foundation? Hanwha Asset Management requires specialized blockchain expertise to develop technical infrastructure for liquid staking products. The Jito Foundation provides deep knowledge of Solana network validation and liquid staking protocols, complementing Hanwha’s financial product structuring and regulatory compliance capabilities. Q3: How does this partnership relate to Hanwha’s earlier agreement with the Solana Foundation? The January 2025 memorandum of understanding with the Solana Foundation established a broader relationship for exploring Solana-based financial products. The Jito Foundation partnership specifically focuses on developing liquid staking infrastructure, representing a more targeted implementation of the earlier agreement. Q4: What regulatory challenges do liquid staking ETPs face in South Korea? South Korean regulators require compliance with securities laws, financial reporting standards, anti-money laundering regulations, and investor protection measures. The partnership must address custody requirements, token classification, tax treatment of staking rewards, and exchange listing standards within this regulatory framework. Q5: How might this partnership affect ordinary investors in South Korea? Successful development of liquid staking ETPs could provide South Korean investors with regulated access to cryptocurrency staking yields through familiar investment vehicles. These products would offer institutional-grade security, clear tax treatment, and accessibility through traditional brokerage accounts, potentially expanding participation in blockchain-based investments. This post Liquid Staking ETP Breakthrough: Hanwha Asset Management’s Strategic Partnership with Jito Foundation Transforms Crypto Investment Landscape first appeared on BitcoinWorld .
