Hanwha Launches Tokenized Securities Platform Ahead of South Korean Regulations
Hanwha Investment & Securities has completed development of a tokenized securities platform that supports blockchain technology from Avalanche and Hyperledger Besu. This comes as South Korea prepares to implement amendments to its Electronic Securities Act and Capital Markets Act, which will allow for the use of distributed ledgers as securities registers.
The new system was built by Hanwha in collaboration with FairSquare Lab and is designed to operate across multiple networks. It supports tokenization of funds, bonds, unlisted stocks, and fractional securities, and is expected to be used by several South Korean financial firms.
South Korea's Financial Services Commission (FSC) has outlined a three-stage implementation roadmap for tokenized securities, with the first stage covering privately pooled money market funds, bonds reserved for institutional investors, unlisted shares issued through a trust structure, and publicly offered fractional investment securities. The second phase will extend tokenization to all publicly offered securities, while the third phase will involve building on-chain payment infrastructure linked to stablecoins.