According to reports, Samsung SDS has reportedly won a contract to build and operate a token securities platform for the Korea Securities Depository (KSD). The company announced on May 6 that it secured the project to develop a comprehensive tokenized securities infrastructure. The platform will turn KSD's token securities testbed into a production-ready blockchain system by 2027, with the platform expected to be completed by February 2027. The project brings South Korea closer to running blockchain-based securities infrastructure before new rules take effect in 2027.
The primary catalyst for Samsung SDS's core business is now in place as the National Assembly passed amendments to the Capital Markets Act and Electronic Securities Act on Thursday. This legislative action creates a formal legal framework for issuing and trading tokenized securities, unlocking a direct multi-year revenue stream by formalizing Samsung SDS's role as a system operator. The new rules are scheduled to take effect in January 2027, following a one-year preparation period, aligning perfectly with Samsung SDS's platform construction timeline. Market forecasts suggest South Korea's tokenized securities market alone could grow to nearly ₹367 trillion ($249 billion) by the end of the decade, positioning Samsung SDS at the center of the country's regulated security token market.
As reported, KSD plans to connect its existing electronic securities account system with blockchain-based distributed ledger data. The system will support tokenized securities issuance, circulation checks, and rights management. Samsung SDS will also build a total volume management system expected to monitor issuance and circulation in real time, enabling KSD to track market activity with clearer data. The company will construct gateway systems, blockchain node management tools, and design the distributed ledger system architecture to help KSD manage blockchain-linked records alongside its current securities account structure. The technology enables ownership rights, dividend entitlements and other securities-related rights to be recorded and traded digitally in a secure manner, similar to stocks and bonds. The framework simplifies post-trade processes and enables fractional ownership, making it easier for retail investors to participate in tokenized securities markets.
The company has secured a significant strategic partnership with KKR to fund its growth initiatives, with the firm committing to purchase KRW 1.22 trillion ($820 million) in newly issued convertible bonds. This capital is earmarked to strengthen Samsung SDS's infrastructure and capabilities, directly supporting its expansion into key growth areas like AI and digital asset infrastructure. KKR's role extends beyond passive investment, serving in an active advisory capacity to Samsung SDS's management, particularly in M&A, capital allocation, and global strategy. This financial flow directly funds the core regulatory play, with Samsung SDS using the investment alongside existing resources to reinforce its competitive position in the digital asset infrastructure business.
The Korea project comes as tokenized securities gain attention in other markets, with Crypto.news reporting that DTCC plans limited production trades for tokenized securities in July 2026, before a wider service target in October 2026. DTCC's working group includes more than 50 firms from traditional finance and crypto, including BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, Circle, Ondo Finance, Ripple Prime, NYSE Group, Nasdaq, and Payward. Additionally, Ripple and Kyobo Life Insurance are testing blockchain-based Korean government bond settlement, targeting near real-time settlement compared with the normal two-day cycle. Samsung SDS's KSD project shows South Korea is preparing the core system before the law begins, with the next step depending on final rules, market readiness, and how issuers use the platform after January 2027.
