South Korea's Financial Services Commission Advances Stock Tokenization Pilot
South Korea's Financial Services Commission (FSC) says it will press ahead with a pilot for tokenizing listed stocks, with the Korea Exchange (KRX) at the center, according to Digital Asset. The plan borrows from what came out of pilot programs at the New York Stock Exchange and Nasdaq. For unlisted stocks, the FSC plans to handle tokenization through trust structures.
Three-Phase Roadmap for Asset Tokenization
The FSC also rolled out a three-phase roadmap for standardized asset tokenization. Phase one is scheduled for February 2027, the point when the Tokenized Securities Act comes into force. At the start, tokenization will apply to private money market funds, private corporate bonds, and unlisted stocks. Only institutional investors will be allowed in. Then phase two widens the scope to public offerings. And phase three targets "on-chain settlement," meaning both securities and settlement methods are carried out on a blockchain.
But the FSC said it will only formally move on on-chain settlement after stablecoin legislation is in place.