South Korea's Financial Services Commission (FSC) has unveiled a three-phase roadmap to establish infrastructure for tokenized securities issuance, covering assets such as stocks, bonds, and funds.
Legal recognition of tokenized securities as digitized forms of securities will take effect on February 4, 2027, following an update to the Act on Electronic Registration of Stocks and Bonds.
Roadmap Phases
The first phase will provide legal recognition for tokenized institutional money market funds, bonds, unlisted stocks, and fractional investment securities. The second phase aims to expand tokenization to all publicly offered securities. The third phase targets onchain payments linked to stablecoins.
The FSC plans to propose revisions to relevant subordinate regulations by the end of September and will determine the timeline for the second and third phases. Before implementation, the FSC will collaborate with the Korea Securities Depository (KSD) to develop the required tokenization infrastructure.
Context
The roadmap implements amendments to the Capital Markets Act and Electronic Securities Act, marking the country's first tokenized securities framework. In May, the FSC indicated it would release detailed rules for tokenized securities as part of its 2027 capital markets framework. Earlier in April, South Korea's Ministry of Economy and Finance announced a pilot project using tokenized deposits for government operational spending, with full rollout planned for the fourth quarter of 2026.
