South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS), the country’s main financial regulators, said phase one of their tokenized securities roadmap will start in February 2027.

It will cover money market funds and bonds for institutional investors, unlisted stocks through trust structures, and publicly offered fractional investment securities.

The plan would allow traditional securities to be tokenized under capital markets rules. Regulators said it was the first stage of a broader market rollout, not a standalone crypto pilot.

In South Korea, fractional investment securities generally let investors invest in less than one full share through intermediaries that pool orders and hold the underlying shares.

Later phases would expand tokenization to all publicly offered securities and add stablecoin-linked onchain payments.

The timing depends on phase one results, adoption by market participants, and pending stablecoin legislation.

The regulators said individual subscriptions will be capped at the lower of 30 million won (US$22,000) or 5% of an issuance.

Issuers that manage their own securities accounts must hold at least US$3 million in equity capital. The FSC said proposals to revise subsidiary legislation are due by the end of September.

🔗 Source: CoinDesk