Hanwha Asset Management partners with the Jito Foundation to develop liquid collateralized ETP infrastructure.

PANews reported on February 23 that, according to The Block, Hanwha Asset Management has entered into a strategic partnership with Jito Foundation to develop infrastructure for liquidity-backed exchange-traded open-ended index products (ETPs) in South Korea.

The agreement announced by both parties on Monday focuses on technical and regulatory preparations to support regulated financial products pegged to JitoSOL, a liquid staking token on the Solana blockchain. Choi Young-jin, Vice President of Hanwha Asset Management, stated that JitoSOL, an asset offering both high yields and liquidity, will be an attractive alternative for retirement pension investors seeking portfolio diversification.

The goals of this partnership include integrating JitoSOL into ETP structures, validating regulated custody solutions, establishing a risk management framework, and coordinating compliance matters with local regulatory bodies. A core objective is to incorporate JitoSOL's dual-reward mechanism (combining standard staking rewards with maximum withdrawable value (MEV) rewards) into financial products suitable for the Korean market.

As of mid-2025, Hanwha Asset Management manages approximately 6.4 trillion won in assets, equivalent to about US$4.44 billion. This collaboration marks the financial institution's preparations for legislation promoting digital asset products and services in South Korea. South Korea's draft Basic Law on Digital Assets is expected to establish a clearer regulatory framework, including allowing domestic institutions to launch cryptocurrency ETPs. Currently, due to disputes over the eligibility of stablecoin issuers, the bill's progress has exceeded the original 2025 deadline, but major South Korean institutions have begun building the technological and institutional infrastructure for digital asset products in preparation for related legislation.