South Korea Sets Three-Phase Roadmap for Tokenized Securities Starting in 2027

South Korea is preparing a three-phase framework to bring traditional securities onto blockchain-based infrastructure, with the first stage scheduled to begin in February 2027. The plan covers stocks, bonds and funds and ultimately envisions on-chain securities settlement linked to stablecoins.

The Financial Services Commission (FSC) unveiled the roadmap on Sept. 4 as part of its broader policy for the digital transformation of securities issuance and circulation. The development was highlighted by crypto research and media account Coin Bureau in a post on X.

South Korea’s Three-Phase Tokenization Roadmap

The first phase will coincide with the implementation of amendments to the Act on Electronic Registration of Stocks and Bonds on Feb. 4, 2027. Under the new framework, tokenized securities will receive legal recognition as a digitized form of securities.

Initially, tokenization will focus on privately pooled money markets funds and bonds reserved for institutional investors, as well as unlisted stocks using a trust structure. Publicly offered fractional investment securities will also be included from the first phase.

The second phase will broaden the infrastructure to accommodate tokenization of publicly offered securities. However, the FSC has not fixed a specific timetable for this expansion. Progress will depend on the stability and efficiency of the initial rollout, technological development among market participants and the evolution of stablecoin legislation.

The final stage is designed to establish an on-chain payments infrastructure connected to stablecoins, potentially bringing securities issuance, trading and payment settlement onto blockchain-based systems.

Korea Exchange and Global Tokenization Push

The FSC has also indicated that the Korea Exchange will play a central role in developing the domestic market infrastructure, with overseas initiatives by exchanges such as the NYSE and Nasdaq serving as reference points for its approach.

The Korean initiative comes as major financial markets increasingly explore tokenized securities. In the United Kingdom, the London Stock Exchange Group has also announced plans to introduce tokenized UK shares in 2027, underscoring a broader shift toward blockchain-based market infrastructure.

For South Korea, the significance extends beyond converting securities into digital tokens. The roadmap could eventually connect securities markets with blockchain-based payment rails, although the timing of that final stage remains dependent on regulatory and technological developments.

The immediate milestone is Feb. 4, 2027, when the amended securities framework is scheduled to take effect and South Korea's first phase of tokenized securities infrastructure is set to begin.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.