- South Korea targets a February 2027 tokenized securities market launch.
- Initial assets include funds, bonds, unlisted stocks and fractional securities.
South Korea is moving to expand tokenized securities beyond fractional investment products, with plans to build infrastructure that can eventually support stocks, bonds, funds and other traditional securities.
The Financial Services Commission (FSC) announced the policy direction on September 4 following a meeting of its public-private tokenized securities consultative body.
According to the announcement, the government is preparing to launch its tokenized securities market in February 2027, with regulators laying out a phased plan to bring traditional financial assets onto blockchain networks.
The first phase is expected to begin when the new Tokenized Securities Act takes effect in February 2027. Under this phase, privately placed money market funds and corporate bonds will be eligible for tokenization for institutional investors. Unlisted stocks will also be tokenized through trust structures, while publicly offered fractional investment securities will be included in the initial rollout.
Three-Phase Tokenization Plan
South Korea plans to connect the new infrastructure with the Korea Securities Depository’s tokenized securities system. The aim is to create a framework for issuing and trading securities through distributed ledger technology while maintaining links with the existing financial market system.
The second phase could expand tokenization to publicly offered securities as the technology and infrastructure develop. Regulators said the timing will depend on the stability and efficiency of the first phase.
The third phase would introduce on-chain settlement by connecting tokenized securities with payment instruments, including stablecoins. However, the timing of this stage will also depend on future stablecoin legislation and technological progress.
The FSC also said companies that already hold the required financial investment licenses will not need a separate license solely for handling tokenized securities. South Korea plans to publish proposed changes to related regulations for public comment later this month.
The measures mark a broader push by South Korean regulators to bring blockchain-based securities into the country’s existing capital-market framework.
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