South Korea expands token securities to include stocks and bonds

South Korea is expanding its token securities (STO) policy beyond fractional investments in art or real estate to include traditional financial assets such as stocks, bonds, and funds. Following a policy announcement by the Financial Services Commission, the roadmap aims to digitize capital market infrastructure using blockchain technology.

The implementation will occur in stages. Starting in February 2025, the first phase will focus on tokenizing private MMFs, corporate bonds, and unlisted stocks through trusts. Subsequent stages aim to expand to public securities and eventually integrate stablecoins to enable on-chain settlements.

This shift mirrors global trends, particularly in the United States, where financial institutions are moving core assets like Treasury bonds, ETFs, and money market funds onto the blockchain. Major entities like DTCC are already working toward commercializing tokenization services, while firms like Franklin Templeton have utilized public blockchains for fund records. The goal is to move from creating new investment products to fundamentally transforming how securities and payments interact within the financial system.