South Korea’s Financial Services Commission (FSC) has officially incorporated token securities into a broader capital market infrastructure overhaul, signaling a major step toward blockchain-based financial products. The announcement, made on Tuesday, places digital securities at the center of a reform plan that also targets faster settlement cycles, extended trading hours, and increased use of artificial intelligence.
The FSC launched a capital market review meeting to align policy changes across government agencies and market operators. While token securities will be discussed separately through a dedicated public-private council, the FSC intends to link the outcomes to the wider reform agenda. A settlement roadmap for securities markets is expected by October, and the Korea Securities Depository (KSD) plans to launch an over-the-counter settlement system for unlisted shares and fractional investment products by the end of 2026.
FSC Vice Chairman Kwon Dae-young outlined four guiding principles for the initiative: “trust, shareholder protection, innovation and market access.” The reform also seeks to integrate artificial intelligence and create a real-time, continuously accessible digital market.
South Korea laid the legal groundwork earlier this year. In January, the National Assembly passed amendments recognizing blockchain-based distributed ledgers as valid securities registries, enabling the issuance and circulation of token securities. The regulatory framework is set to take effect in February 2027, by which time subordinate regulations and supporting infrastructure must be complete. Proposed rules and guidelines are expected by July.
On the technical side, Samsung SDS won a contract from the KSD to build a token securities management platform that will connect the depository’s electronic securities account system with blockchain data. Completion is targeted for February 2027, coinciding with the new framework’s launch. The FSC plans to continue detailed discussions through the council before formally integrating token securities into the capital market review.
