South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have announced a phased roadmap to fully tokenize traditional securities, including stocks, bonds, and funds, starting February 2027. The plan, reported by CoinDesk, aims to expand Security Token Offerings (STO) from fractional investment products to conventional securities. FSC Vice Chairman Kwon Dae-young stated that the authorities are committed to laying the groundwork for issuance and circulation of tokenized traditional securities, with the ultimate goal of transforming capital market infrastructure for digital connectivity. The roadmap includes three phases: Phase 1 (February 2027) involves legal changes for electronic registration, institutional money market funds, bonds, unlisted stocks via trusts, and fractional investment securities; Phase 2 extends tokenization to all publicly offered securities; Phase 3 establishes stablecoin-linked on-chain payment infrastructure. Individual subscription limits are set at the lower of 30 million won (approximately $22,000) or 5% of total issuance, with OTC platform annual net purchase cap at around $74,000. The timeline for later phases depends on Phase 1 execution and pending stablecoin legislation.
South Korea's Tokenized Securities Roadmap
South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have rolled out a phased roadmap to fully tokenize traditional securities — stocks, bonds, and funds — starting in February 2027. CoinDesk reported the plan. It widens Security Token Offerings (STO) beyond fractional investment products and into standard securities.
FSC Vice Chairman Statement
FSC Vice Chairman Kwon Dae-young said the authorities are committed to building the foundation for the tokenization and circulation of a wider range of traditional securities. The end goal, he said, is to fully transform capital market infrastructure and achieve digital connectivity.
Three Phases
The roadmap breaks into three phases. Phase 1, set to begin in February 2027, covers the Electronic Registration Act, laws tied to institutional investors’ money market funds and bonds, unlisted stocks handled through trust structures, and publicly offered fractional investment securities. Phase 2 broadens tokenization to all publicly offered securities. Phase 3 sets up a stablecoin-linked on-chain payment infrastructure. But the schedule for phases 2 and 3 hinges on how Phase 1 is carried out and on still-pending stablecoin legislation.
Investment Limits
Individual subscription caps are the lower of 30 million won (about $22,000) or 5% of the total issuance. And the annual net purchase cap for over-the-counter trading platforms is about $74,000.
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