South Korea Unveils Tokenized Securities Roadmap with Stablecoin Focus
South Korea's Financial Services Commission (FSC) has outlined a three-phase plan to establish the legal and technical framework for issuing tokenized securities. This effort, which aims to clarify how onchain securities fit within the country's capital markets framework, is set to be implemented in stages.
The first phase will focus on granting legal recognition to tokenized versions of selected instruments, including institutional money market funds, bonds, unlisted stocks, and fractional investment securities. This phase is expected to begin on February 4, 2027, following an update to the Act on Electronic Registration of Stocks and Bonds.
The second phase will broaden tokenization to apply to all publicly offered securities, while the third phase targets onchain payment flows linked to stablecoins. The FSC plans to collaborate with the Korea Securities Depository (KSD) to develop the necessary tokenization infrastructure before implementing these phases.