TLDR
- South Korea’s Financial Services Commission has laid out a three-stage plan to tokenize all securities, including stocks, bonds, and funds
- Phase one kicks off February 4, 2027, covering money market funds, corporate bonds, and unlisted shares for institutional investors
- Phase two expands tokenization to all publicly offered securities if phase one is stable
- Phase three introduces onchain stablecoin settlement infrastructure
- Existing licensed firms can handle tokenized securities without needing an extra license
South Korea’s financial regulators have published a roadmap to bring tokenization to its entire capital markets, from private bonds to publicly listed stocks, with stablecoin settlement as the end goal.
BREAKING: 🇰🇷 South Korea just unveiled a 3-stage plan to bring $5.36 trillion worth of stocks, bonds, and funds onchain, starting February 2027. pic.twitter.com/U7Y5yY9tKr
— Bull Theory (@BullTheoryio) September 4, 2026
The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) announced the plan on Friday following the third meeting of a consultative body on tokenized securities.
The country already has 11.3 million verified crypto users and a stock market with daily trading volumes that rival crypto exchanges.
Phase One Starts February 2027
The first stage begins when South Korea’s amended Electronic Registration Act takes effect on February 4, 2027. This law legally recognizes blockchain-based securities.
Under phase one, private money market funds and private corporate bonds for institutional investors will be tokenized first. Unlisted shares will also be tokenized through a trust structure, meaning the underlying shares stay on the existing system while investors receive a tokenized trust-beneficiary security.
Retail investors on over-the-counter exchanges will face an annual net purchase limit of 100 million won, around $74,000, per venue. Individual subscriptions are capped at 30 million won, around $22,000, or 5% of the total issuance volume, whichever is lower.
Stablecoin Settlement Is the Final Goal
If phase one runs smoothly, phase two will open tokenization to all publicly offered securities. The timing of phases two and three depends on how phase one performs and on pending stablecoin legislation.
Phase three, the final stage, sets up an onchain payment infrastructure where investors can settle tokenized securities using stablecoins.
The FSC pointed to BlackRock’s BUIDL tokenized fund and Hong Kong’s tokenized green bonds as reference points for the program.
Non-bank issuers wanting to run investor accounts for their own token securities must hold at least 4 billion won, around $3 million, in equity capital and employ dedicated compliance and IT staff.
Existing licensed brokerages and trading firms will not need an additional license to handle tokenized securities. Over-the-counter exchanges must consult the FSS before operating.
The FSC said it plans to introduce proposals to revise subsidiary legislation by the end of September.
South Korea’s move comes as Japan announced plans last week for a national blockchain settlement system for stocks and government bonds, targeting the early 2030s. Singapore also finalized its stablecoin licensing framework this week.
The FSC said its ultimate goal is to completely transform capital market infrastructure for digital connectivity.
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