“STOs have begun to consolidate trust in the global market, and stablecoins are increasing”

(Reporter Song Zaimin from Zhiying E-Daily Market) “The most important thing in the token stock issuance (STO) market now is not the obsession with returns, but the confidence and reassurance of the market.”

Kyle Sonlin, co-founder of STM and CEO of Paxsum, made this diagnosis during a fireside chat at the “2024 Edaily Global STO (Security Token Offering) Summit” held at the Korea Exchange (KRX) in Yeouido, Seoul on the 30th. Against the backdrop of the ever-expanding and explosive growth of the STO market, the assessment believes that instead of blindly pursuing performance, market participants should be encouraged to have confidence and stability in the industry foundation and fully recognize the characteristics and advantages of STO.

(Edaily reporter Lee Young-hoon) Paxum CEO Kyle Sonlin and Paxum Chairman Ryan Kirkley delivered a speech entitled “Extending Traditional Finance to the Digital Economy” at the STO Summit (SECURITY TOKEN OFFERING SUMMIT) held at the Korea Exchange on the 30th, Yeouido, Seoul. STO refers to securities issued in the form of tokens using blockchain technology after physical assets or financial assets are divided into small pieces. The STO Summit brought together speakers from all over the world, including the United States, Europe, Singapore, Hong Kong, etc. The purpose of discussing STO in Hong Kong, Japan and El Salvador is to see leading companies from countries that first developed the market in one place.

CEO Sun Lin said, “Recently, when STO-related issues are discussed in the market, both investors and venture capital (VC) only ask about the expected rate of return. “If we only focus on using STO to increase returns, the digital asset market may become unstable,” he said. “It is important to prove that STO is gradually becoming legal within the scope of global market regulation.” He believes that the launch of STO-related products by major investment companies that have established a foothold in the global market in recent years is a positive signal.

CEO Sun Lin said: “Recently, BlackRock, the world’s largest asset management company, tokenized its money market fund (MMF) products. “This is a fairly successful case, and I think we can find the starting point (of STO expansion) here,” he said, adding, “We just need to gradually launch multiple products, increase the use of blockchain solutions, and expand the digital economy.”

Ryan Kirkley, chairman of blockchain solutions company Parksum, said: “STOs used to be a challenge to gain a stable foothold in the market, but recently they have followed the trend of tokenizing real-world assets (RWAs),” he said, adding that he said individual projects from global financial companies including BlackRock “are growing rapidly, which is a positive phenomenon.”

“For STOs, it is important to ensure liquidity and significantly increase trading volume by increasing market trust,” he continued. “In particular, it has the advantage of enabling instant payments, so if regulations like Know Your Customer (KYC) start to be actively implemented on-chain, the spread of tokenization will be further accelerated,” he explained.