South Korea to tokenize securities in three phases by 2027

South Korea will tokenize stocks, bonds, and funds in three phases from 2027, starting with institutional products and expanding to public offerings, with stablecoin-based settlement as the final step.

South Korea has announced a three-stage roadmap to tokenize its securities market, including stocks, bonds, and funds, beginning in February 2027 when new securities laws take effect. The first phase will target institutional investors, covering private money market funds, private corporate bonds, unlisted stocks, and fractional investment products. Unlisted shares will be tokenized through trust structures. If the initial phase succeeds, the second phase will expand tokenization to all publicly offered securities. The final phase aims to establish on-chain settlement infrastructure, enabling stablecoin-based payments for tokenized assets, pending stablecoin legislation. Licensed financial firms can handle tokenized securities without new licenses, while issuers managing their own accounts must meet equity and cybersecurity standards. Retail investors will face subscription and purchase limits. The plan references international models and industry collaborations, positioning South Korea as a digital asset leader.