South Korea's Hanwha taps Jito Foundation for liquidity staking ETPs

Hanwha Asset Management, one of the largest players in South Korea's financial market, has entered into a strategic partnership with the Jito Foundation to develop infrastructure for liquidity staking exchange-traded products (ETPs) in the country.

The agreement, announced Monday, focuses on technical and regulatory groundwork to enable regulated financial products tied to JitoSOL, a liquid staking token on the Solana blockchain. 

"JitoSOL is an innovative asset that simultaneously provides high returns and liquidity," said Choi Young-jin, vice president of Hanwha Asset Management, in a translated statement. "It will become an attractive alternative asset for retirement pension investors seeking to diversify their portfolios."

The partnership targets the technical integration of JitoSOL into ETP structures, validation of regulated custody solutions, establishment of risk management frameworks, and coordination with local authorities on compliance.

A key priority is incorporating JitoSOL's dual yield mechanism — combining standard staking rewards with maximal extractable value (MEV) rewards — into products suitable for the South Korean market.

The move mirrors recent global developments. Last month, 21Shares launched the Jito Staked SOL ETP (JSOL) on Euronext. In the U.S., VanEck filed an S-1 registration statement with the SEC in August last year for a JitoSOL ETF, which remains pending.

Digital Asset Basic Act

As of mid-2025, Hanwha Asset Management had roughly 6.4 trillion won ($4.44 billion) in assets under management. This partnership marks another major financial player positioning for South Korea's legislative push to establish and promote digital asset products and services.

South Korea's Digital Asset Basic Act, currently under development, is expected to establish clearer regulatory frameworks for digital assets, including regulations that would allow domestic institutions to launch crypto ETPs.

However, disputes over stablecoin issuer eligibility have stalled the Digital Asset Basic Act beyond its original 2025 deadline. Regulators are pushing for bank-exclusive licensing, a move industry participants claim would stifle innovation.

Still, major institutions in the country have begun preparing for the legislation by building out the technical and institutional infrastructure for digital asset products.