South Korea has unveiled a comprehensive three-stage roadmap to bring stocks, bonds and funds onto tokenized infrastructure, with the final phase connecting securities settlement to stablecoin-based onchain payments. According to reports from Crypto Breaking News and AMBCrypto, the Financial Services Commission announced Friday that tokenized securities are expected to gain formal legal recognition starting February 4, 2027, following an update to the Act on Electronic Registration of Stocks and Bonds. FSC Vice Chairman Kwon Dae-young unveiled the policy at the third meeting of a public-private consultative group, describing a longer-term plan to upgrade capital market infrastructure for digital connectivity. The framework was officially announced on September 4, 2026, marking a significant milestone in South Korea's blockchain financial infrastructure development. The implementation will begin with selected funds, bonds, unlisted stocks and fractional investment products in February 2027, with the second phase opening tokenization to all publicly offered securities, and the final stage introducing onchain payment infrastructure linked to stablecoins, though timing for phases two and three depends on phase one results, technological adoption by market participants, and pending stablecoin legislation.
The implementation will begin with selected funds, bonds, unlisted stocks and fractional investment products in February 2027. As reported by Crypto Breaking News and AMBCrypto, during the first phase, privately pooled money market funds and bonds reserved for institutional investors will become eligible for tokenization, along with unlisted stocks issued through trust structures and publicly offered fractional investment securities covering assets such as music copyrights and real estate. The second phase will open tokenization to all publicly offered securities, while the final stage will introduce onchain payment infrastructure linked to stablecoins. The FSC has opted for a gradual transition rather than moving the entire existing electronic securities infrastructure onto blockchain technology at once, citing substantial development costs and operational risks. Securities firms and other eligible issuers will be responsible for developing their own distributed ledger systems and linking them with the Korea Securities Depository, rather than migrating the entire existing electronic securities system at once. The roadmap is part of amendments to the Capital Markets Act and the Electronic Securities Act, with the FSC planning to introduce revision proposals for subordinate statutes by the end of September this year.
The FSC's roadmap establishes specific investment limits and operating requirements for tokenized securities. According to Crypto Breaking News, for non-monetary trust beneficiary certificates, the maximum individual subscription would be the lower of ₹2.5 crore ($300,000) or 5% of the total issuance volume. Retail investors using over-the-counter exchanges will face an annual net purchase ceiling of ₹8.5 crore ($1 million) on each OTC platform. The new framework introduces additional safeguards for retail investors participating in fractional investment products, with individual subscription limits set at the lower of 30 million won (~$22,000) or 5% of total issuance, and investors purchasing token securities through OTC exchanges facing an annual net purchase limit of 100 million won (~$74,000) per exchange. Existing financial investment companies will not need separate authorization solely for handling tokenized securities, as firms already licensed for relevant financial activities can operate within their existing permitted business areas. The FSC also plans to revise rules governing fractional investment products, permitting products combining multiple assets when they involve the same asset category and satisfy specific requirements, including restrictions designed to prevent distressed assets from being mixed into structures. Issuers managing their own securities accounts must hold at least $3 million in equity capital and meet specific IT and cybersecurity standards.
Technical infrastructure is being prepared alongside the legal framework, with Samsung SDS winning a contract earlier this year to develop a token securities platform for the Korea Securities Depository. As reported by Crypto Breaking News and AMBCrypto, the system is expected to connect the KSD's existing electronic securities account infrastructure with blockchain records, covering issuance, circulation checks, rights management and monitoring. The Korea Securities Depository has prepared screening criteria for distributed ledgers used by securities firms, with tests covering core issuance and circulation functions as well as contingency procedures for system failures. Under the proposed system, securities such as stocks and bonds can be recorded and managed on a distributed ledger rather than through conventional electronic systems, with the underlying financial asset remaining unchanged. The key difference lies in how ownership and transactions are recorded: paper-based securities are physical, assets registered through conventional electronic networks are electronic securities, while those recorded on a blockchain are classified as token securities. Before the rollout begins, the FSC will work with the Korea Securities Depository to develop the systems required for issuance and management, with implementation depending on the performance and stability of the initial phase, the progress of private-sector infrastructure and the development of legislation governing stablecoins.
South Korea's plan develops alongside blockchain settlement projects across Asia, with Japan studying a system for publicly traded stocks and government bonds on blockchain infrastructure. According to Crypto Breaking News and AMBCrypto, Asia accounted for 30% of global stablecoin trading activity in 2025 and recorded the highest regional growth rate in crypto activity. South Korea itself had 11.3 million verified crypto users, giving regulators a sizable domestic digital asset market as the securities framework moves toward implementation. The framework's significance lies in moving token securities beyond their earlier role in niche fractional investment products and placing them closer to the core of traditional capital markets. South Korea's approach of starting with limited assets before expanding toward retail securities and stablecoin-based settlement suggests regulators are prioritizing controlled adoption over rapid transition. If the model succeeds, South Korea could demonstrate how blockchain can be integrated into regulated financial infrastructure without creating a parallel market, potentially encouraging other Asian financial centers to accelerate their own tokenization strategies. The FSC plans to publish draft subordinate regulations under the Capital Markets Act and Electronic Securities Act for legislative notice at the end of September, followed by a public consultation period.
