South Korea Unveils Three-Phase Tokenization Plan for Mainstream Capital Markets

South Korea has unveiled a three-phase plan to integrate tokenized assets into mainstream capital markets. The Financial Services Commission and Financial Supervisory Service have created a new legal framework that will take effect in February 2027.

The first phase of the plan focuses on tokenizing bonds, allowing for stablecoin settlements. This move is expected to bring regulatory clarity, accelerating crypto adoption and institutional fundraising.

South Korea's financial regulators aim to expand tokenization beyond niche fractional investments, bringing it into mainstream capital markets. The country's infrastructure development will enable investors to trade and settle tokenized stocks, bonds, and funds using blockchain technology.