South Korea's Financial Services Commission has officially announced that $5.36 trillion in securities will be tokenized by February 2027 when changes to the Electronic Registration Act take effect. According to CoinDesk, this represents approximately 367 trillion won, roughly $249 billion, by 2030. The regulator's third public-private meeting on September 4 outlined a staged implementation approach, with the first phase focusing on privately pooled money-market funds, bonds for institutional investors, unlisted stocks through trust structures, and publicly offered fractional investment securities. The second phase will extend tokenization to all publicly offered securities, while the final phase will build onchain payment infrastructure linked to stablecoins. However, as reported by Seoul Economic Daily, the FSC's own release clarifies that tokenization will expand beyond fractional investment products into ordinary securities such as stocks, bonds and funds, with conventional securities coming first in limited forms before broader public securities are introduced.
According to reports from Odaily News, Hanwha Investment & Securities has completed development of a tokenized securities platform supporting Avalanche and Hyperledger Besu blockchain networks. The South Korean brokerage began developing the platform with blockchain technology firm FairSquare Lab in 2025, with development now completed. The system was designed to operate across multiple networks, providing financial institutions with flexibility in their blockchain infrastructure choices. The Korea Securities Depository is preparing infrastructure capable of connecting with Avalanche, Hyperledger Besu, and Hyperledger Fabric, with participation limited to approved institutions including securities companies and the depository. Seoul Economic Daily reports that KSD's standard requirements are being built to link with these three blockchain networks, making Avalanche's relevance more concrete than previous market speculation.
Samsung SDS has been named as the primary infrastructure provider for South Korea's tokenized securities market. In May, the company announced it had won a Korea Securities Depository project to implement a security-token management platform after running function-analysis consulting in 2024 and building a testbed in 2025. The platform will cover total issuance and distribution volume management, distributed ledger functions, and node management. Existing financial investment companies will not need separate licenses solely for handling tokenized securities, as firms can conduct tokenized securities activities within their current licensed business areas. Retail investors face specific limits, with the FSC proposing to cap individual subscriptions to non-monetary trust beneficiary certificates at the lower of ₹30 million or 5% of total issuance. The first phase specifically targets privately pooled money-market funds, bonds for institutional investors, unlisted stocks through trust structures, and publicly offered fractional investment securities, with broader public securities left for later phases.
As reported by Crypto.news, Hanwha Investment & Securities has significantly expanded its tokenization investments through stakes in major blockchain companies. The conglomerate became Securitize's largest shareholder with holdings across three affiliated entities reaching a combined 9.6% stake, including a 5.9% stake through a private equity fund and 3.1% through H Foundation. In July, the brokerage disclosed a ₹30 billion investment in Digital Asset, the operator of the institutional-focused Canton Network. Hanwha has also invested in blockchain research company Xangle and Web3 infrastructure provider Kresus. Despite not being named in the FSC announcement, Avalanche has built concrete partnerships with Korean financial institutions, including KB Kookmin Card's hybrid stablecoin payment model with OpenAsset announced in March, WeBlock's memorandum of understanding for RWA and stablecoin infrastructure from September 2025, and Mirae Asset Global Investments' reported work with Ava Labs on fund tokenization and blockchain-based settlement. NHN KCP also agreed in April to build a payments-focused Layer 1 network with Ava Labs.
Despite not being officially named in the FSC's tokenization plan, Avalanche (AVAX) experienced significant market movement following the announcement. According to CoinMarketCap, AVAX was trading around $7.56 on September 5, up 2.79% over 24 hours, while CoinGecko showed the token at 10,333 won on September 6, up 3.3% on the day. As reported by Seoul Economic Daily, this movement reflects crypto traders' response to the national tokenization roadmap and Avalanche's existing Korean partnerships with banks and payment companies, with traders reaching for AVAX when the FSC roadmap landed. However, the outlet emphasizes that proximity is not procurement - Avalanche was not named in the FSC announcement, and until the depository or FSC names a chain for live market infrastructure, AVAX is trading on educated bets rather than confirmed government decisions. The tokenization framework remains flexible, with later phases dependent on technology adoption and stablecoin legislation, though the regulator emphasized that conventional securities will come first in limited forms before broader public securities are introduced.
