Hana Financial Group and Mirae Asset Securities said Thursday that they have signed a joint deal for business cooperation in Web3 and security tokens in efforts to lead the way into the future of digital finance.

“Through our solid partnership, we will actively take up opportunities for change and lead the way for innovation in digital finance by providing new values and experiences,” Hana Financial Group Chairman Ham Young-joo said.

Web3 is a new version of the internet incorporating concepts such as decentralization, blockchain-based technology and token-based finance, including security tokens. Security tokens are the digital form of traditional investments such as stocks or bonds that transfer value from assets to a token.

Under the deal, the two companies will participate in Next Finance Initiative, a security token consortium, to promote and expand the security token sphere in Korea. They will work on issuing high-quality security tokens, finding innovative uses for blockchain technology, and preparing a system for protecting investors.

Security tokens can be used to provide domestic investors with opportunities for investing in overseas assets. Thus, domestic issuers are expected to be able to easily raise investment funds for overseas investors, enabling the establishment of a borderless financial investment ecosystem, Hana explained.

They also intend to build an innovative finance paradigm through their cooperation in Web3.

In particular, the group’s subsidiaries Hana Bank and Hana Securities will work with Mirae Asset to respond to anticipated regulatory and market changes as well as the issuance, distribution, and infrastructure building for security tokens.

After establishing their foothold in Korea, the companies plan to expand their business overseas.