Korean securities firms aim to lead global asset tokenization

Korean securities firms are accelerating efforts to lead global asset tokenization, with Mirae Asset Securities highlighting potential changes in trading and settlement processes.

Lee Yong-jae, head of the firm’s digital asset division, noted recent amendments to Korea’s Electronic Securities Act and Capital Markets Act, which recognize blockchain’s legal status and enable security token offerings (STOs).

He explained that these laws facilitate over-the-counter trading and tokenization of revenue securities, such as real estate and music copyrights.

Lee also described a future where instant settlement (T+0) and 24/7 trading become possible through blockchain, allowing global investors to trade tokenized assets without time or space constraints.

Mirae Asset is developing solutions to support asset tokenization and expects the market to evolve into a blockchain-based investment platform.

The laws are set to take effect in a year, with industry preparations focusing on investor protection and valuation standards.

🔗 Source: Chosunbiz

🧠 Food for thought

Implications, context, and why it matters.

Korea’s tokenization push could create competing digital islands

Korea is aiming for a seamless market, yet large securities firms and other groups are building separate blockchain systems before the security token regime starts. That split raises interoperability worries, so tokenized assets and trading may not move cleanly across networks 1.
Big firms have joined rival consortia. Mirae Asset Securities is backing the Next Finance Initiative with SK Telecom and Hana Financial Group, while Shinhan Securities is running the PULSE project with SK Securities 2, 1.
Under amendments to the Electronic Registration Act/Electronic Securities Act, security token issuers must notify and apply for electronic registration with the Korea Securities Depository (KSD). The KSD is Korea’s central securities depository that keeps official records of securities ownership and will handle issuance and monitoring tasks 3.
The setup also tries to fit varied, non-standard securities and cash-flow rights. Examples include revenue securities tied to real estate or music copyrights, alongside investor protection and oversight needs 4, 1.

A new regulatory playbook if Korea avoids the interoperability trap

The pitch includes global 24/7 trading plus faster settlement. Korea’s homegrown, fragmented systems could still create a “Galapagos” market that is hard to connect with overseas platforms 1.
The approach mixes distributed-ledger issuance with strong central-market-infrastructure involvement. The KSD remains central through the legally required notification and registration process, while unlicensed intermediaries cannot broker security tokens 3.
The legal changes are also shifting how firms plan to make money. Lee Yong-jae said Mirae Asset Securities is expanding into technical support and consulting that helps underlying-asset holders tokenize assets, rather than shrinking securities firms’ roles 4.