TLDR
- Hanwha Asset Management formed a partnership with the Jito Foundation to build infrastructure for liquidity staking ETPs in South Korea.
- The partnership aims to integrate JitoSOL into regulated financial products through technical and compliance work.
- Hanwha executives stated that JitoSOL offers strong returns and liquidity and may fit long-term retirement products.
- The partners plan to validate custody systems and establish risk frameworks required for ETP approval.
South Korea’s Hanwha Asset Management has formed a partnership with the Jito Foundation to advance liquidity staking ETPs, and the firms aim to build technical and regulatory systems together. They plan to align the work with evolving digital asset rules in the country.
Jito Foundation Partnership
Hanwha Asset Management confirmed the partnership as it began preparing infrastructure for products tied to JitoSOL, and it outlined plans to support regulated ETP structures in South Korea. The firm stated that the agreement covers technical integration and regulatory coordination, and it emphasized the need for a compliant market framework.
Executives highlighted the asset’s dual rewards model, and Choi Young-jin said, “JitoSOL provides high returns and liquidity,” and he added that the asset may fit retirement products in the future. The partners intend to work on custody validation and risk controls, and they plan to guide institutions through complex digital asset rules.
The project also focuses on aligning yield mechanisms with domestic requirements, and the teams will test how the rewards can operate in regulated structures. They expect this work to support future product filings. The firms also plan to standardize reporting systems, and they expect these systems to help institutions assess product performance.
JitoSOL Integration Efforts
The partners will create technical channels for linking JitoSOL to ETP systems, and they will refine the data flows needed for compliance, and they will coordinate with blockchain teams on reliability. They intend to verify functions required by licensed providers, and they will assess operational demands for continuous staking rewards.
The dual yield structure uses staking income and MEV rewards, and the firms plan to model these returns for product design, and they will confirm how the yield can be reported under local rules. They will consult with regulators during the design process, and they will prepare the documentation required for regulated distribution.
This work reflects broader global activity around ETPs tied to staking assets, and 21Shares recently launched a similar product in Europe, and VanEck has a pending filing in the United States. The partners said these developments show rising demand for regulated staking exposure, and they intend to align their work with global trends.
Market and Regulatory Context
Hanwha Asset Management manages trillions of won in assets, and it has expanded digital asset initiatives, and it continues to build operational tools for new products. The firm described the partnership as part of long-term planning, and it expects regulatory clarity to support product launches.
South Korea’s Digital Asset Basic Act remains under development, and policymakers continue to discuss licensing rules, and disagreements about stablecoin issuers have delayed the timeline. Regulators have pushed for bank-only licenses, and industry groups argue this would restrict growth, and the debate remains unresolved.