South Korea Unveils Tokenized Securities Timeline with $5.36 Trillion in Assets
South Korea has announced a formal timeline for its tokenized securities market. The country's Financial Services Commission (FSC) revealed that the first phase of tokenization will begin in February 2027, when changes to the Electronic Registration Act take effect.
The FSC's plan involves a staged build, starting with privately pooled money-market funds and bonds for institutional investors, unlisted stocks through a trust structure, and publicly offered fractional investment securities.
This initial phase is deliberately small, with the goal of testing the waters before expanding to more complex assets. The later phases will see tokenization open up to all publicly offered securities, followed by on-chain payment infrastructure linked to stablecoins.
Avalanche (AVAX) has seen its price surge following the announcement, but it's essential to note that the FSC did not name any specific blockchain for live market infrastructure. Samsung SDS is building KSD's core platform, and Avalanche has partnerships with Korean companies like Hanwha Investment & Securities.
While these partnerships are significant, they don't guarantee AVAX will be chosen as the official settlement layer for Korea's securities market.