South Korea to tokenize all stocks, bonds and funds

Traders Union
All News
Crypto
South Korea to tokenize all stocks

Tokenization will take place in three stages

South Korea’s Financial Services Commission (FSC) has prepared a three-stage plan for developing the new infrastructure.

In the first stage, once the law takes effect, tokenization will begin with private money market funds and corporate bonds for institutional investors. Equities will initially be tokenized through a trust structure: the underlying shares will remain in the existing system, while investors will receive tokenized rights to them.

If the first stage proves successful, the infrastructure will be expanded to publicly offered securities. In the third stage, the authorities plan to create an onchain settlement system that will allow transactions involving tokenized assets to be settled with stablecoins.

The FSC cited BlackRock’s BUIDL tokenized fund and Hong Kong’s tokenized green bonds as key reference points.

Brokers will not need an additional license

Existing securities brokers and trading firms will be allowed to handle tokenized securities without obtaining an additional license.

However, over-the-counter platforms will first have to consult the Financial Supervisory Service. Retail investors on such platforms will face an annual net-purchase limit of 100 million won, or about $74,000, per venue.

The FSC has also set requirements for non-bank issuers that want to manage investor accounts for their own tokenized securities. They will need at least 4 billion won, or roughly $3 million, in equity capital, as well as dedicated staff responsible for accounts, compliance and IT infrastructure.

How South Korea’s crypto market has developed

South Korea has gradually been moving from targeted oversight of cryptocurrencies toward a more comprehensive regulatory framework for the industry. In 2021, the authorities required virtual asset service providers to register with the financial regulator and strengthened anti-money laundering requirements. In July 2024, a separate law on the protection of virtual asset users came into force, introducing rules for safeguarding client funds and penalties for market manipulation and other unfair practices.

The next stage has been the convergence of the crypto market with traditional finance. In January 2026, parliament approved amendments that created a legal framework for the issuance and trading of tokenized securities on blockchain networks.

Investor interest in digital assets also remains high. In the second half of 2025, the number of users eligible to trade cryptocurrencies increased by another 3%, while funds held in won-denominated accounts rose by 31%, despite declines in trading volumes and overall market capitalization.

Earlier, South Korea faced the risk of new tariffs.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.