On Friday 21st June the Mina Foundation announced an exciting collaboration with the Mirae Asset Financial Group. It marks a significant development in using zk proofs on Mina Protocol in real-world applications.
As traditional finance intersects with blockchain, a compelling use case emerges: real-world assets (RWAs) and security token offerings (STOs). Predictions indicate that RWAs could drive the next crypto bull market, surpassing influences like Bitcoin halvings or Ethereum ETFs. With Korea’s STO market projected to reach $287 billion by 2030 and Japan actively issuing security tokens, this trend is noteworthy.
Defining RWAs and STOs
RWAs involve tokenizing tangible assets like real estate and collectibles, while STOs represent financial instruments such as stocks and bonds. These digital assets offer new opportunities for ownership and trading, combining the best of both traditional finance and blockchain technology.
Mina Foundation’s Collaborative Initiative
The Mina Foundation and Mirae Asset Financial Group are developing a privacy-focused STO solution utilizing zero-knowledge proofs (ZKPs). This collaboration aims to maintain privacy and regulatory compliance in Asian markets through Mina’s blockchain technology.
How the Solution Works
Private Ledger and ZK Rollup: Mirae Asset uses a private ledger (Hyperledger BESU) to manage STO data. The ZK Rollup processes this data, extracting select information and committing it to the public Mina blockchain. This ensures privacy and meets regulatory requirements.
zkApp for Proof of Ownership: The zkApp calculates commitments of the STOs, allowing users to generate privacy-enhanced proofs of ownership on their own devices, ensuring data security and privacy.
Components of the System
- ZK Rollup: Utilizes o1js and verifiable off-chain computation to preprocess and manage STO data, ensuring compliance and privacy.
- zkApp: Validates STO data and creates proofs of ownership, operating securely on the client’s device.
Future Prospects
This partnership with Mirae Asset demonstrates Mina’s potential in mainstream finance, emphasizing the importance of user and data privacy as blockchain technology integrates with traditional financial systems. The Mina blockchain, built on zero-knowledge technology, offers significant advantages in decentralization, data protection, privacy, and scalability. This collaboration showcases Mina’s ability to support financial institutions in handling STOs and RWAs, protecting clients and their data through advanced ZK technology.
For more information, visit the Mina Protocol Blog.
