South Korea to Tokenize Financial Markets by 2027
- South Korea plans to allow tokenized stocks, bonds, and funds starting February 4, 2027.
- The Financial Services Commission’s framework aims to integrate blockchain into one of Asia’s largest capital markets.
- Initial phases will focus on institutional investors, with potential expansion to public securities and stablecoin-based settlement.
- Firms must meet a minimum equity-capital requirement of $3 million (4 billion KRW) to issue tokenized securities.
- Retail investors will be limited to $74,000 (100 million KRW) in annual net purchases per over-the-counter exchange.
- South Korea’s stock market capitalization reached $4.89 trillion in recent years, highlighting the financial system’s scale for potential tokenization.
South Korea is set to transform its financial market infrastructure by moving stocks and bonds onto blockchain technology by February of the next decade. The initiative begins with institutional products and may extend to broader securities if early phases succeed and regulatory conditions permit stablecoin settlements.
This strategic move positions South Korea as a key player in the global race towards integrating blockchain into regulated financial markets, potentially impacting a $4.89 trillion stock market capitalization significantly. (Source)
