South Korea targets 2027 launch for tokenized securities market

South Korea has laid out a three-stage plan to bring stocks, bonds and funds onto tokenized infrastructure, with the final phase set to connect securities settlement to stablecoin-based onchain payments. Summary South Korea will begin expanding tokenized securities in February 2027, starting with selected funds, bonds, unlisted stocks and fractional investment products. The second phase will open tokenization to all publicly offered securities, while the final stage will introduce onchain payment infrastructure linked to stablecoins. Existing licensed financial firms will be allowed to handle tokenized securities under their current licenses, while qualifying issuers can manage their own securities accounts. Retail subscriptions will be capped at the lower of 30 million won or 5% of an issuance, with annual net purchases on OTC exchanges limited to 100 million won. The Financial Services Commission said Friday that the roadmap will begin when amendments to the Electronic Registration Act take effect on Feb. 4, 2027, expanding tokenization beyond fractional investment products and creating a legal route for conventional securities to be issued and managed through distributed ledgers...