Korea Accelerates Blockchain-Powered Finance with 2027 Tokenization Target

South Korea's Financial Services Commission (FSC) has unveiled a three-step plan to bring stocks, bonds, and funds onto blockchain infrastructure. The ambitious roadmap aims to modernize securities issuance and trading through tokenization.

The first phase will focus on money market funds, bonds, exchangeable unlisted stocks (EUSTs), and publicly listed fractional stock sales. This phase is set to evaluate market structures and operational processes before expanding the adoption of tokenization for various financial products.

By 2027, new legislation will recognize tokenized securities as a digital form of traditional securities. The FSC hopes to integrate onchain settlement with stablecoins into the long-term scheme, enabling issuances, trades, records, and settlements to take place on interwoven blockchain systems.