Korea Exchange’s Koscom signs 12 securities firms to tokenization platform KoSTO – report
Koscom, a subsidiary of the Korea Exchange, has expanded its KoSTO tokenization platform by securing commitments from twelve major securities firms. This initiative aims to provide shared infrastructure for token issuance, distribution, and settlement, reducing the technical and financial burden on individual firms. The platform is designed to integrate directly with the Korea Securities Depository (KSD) to ensure data integrity across multiple blockchain networks. By centralizing these processes, Koscom prepares the market for South Korea's upcoming securities legislation, which takes effect on February 4, 2027. This regulatory shift will formally recognize tokenized securities and bonds as legally equivalent to conventional financial instruments. Furthermore, the new laws will permit licensed intermediaries to facilitate over-the-counter trading of fractionalized real-world assets like real estate and music royalties. This development represents a significant institutional effort to standardize the domestic RWA ecosystem ahead of national legal adoption.
- ▸Koscom's KoSTO platform secured participation from twelve securities firms for shared tokenization infrastructure.
- ▸New South Korean legislation effective February 2027 will grant tokenized securities full legal equivalence.
- ▸KSD is building a blockchain system to aggregate and verify multi-chain securities issuance data.
- ▸Regulatory changes will enable licensed firms to trade fractionalized RWA assets like music and real estate.
Koscom is a technology subsidiary of the Korea Exchange, primarily responsible for providing IT infrastructure to the South Korean financial markets. The Korea Securities Depository (KSD) acts as the central securities depository for the nation, managing the settlement and custody of financial assets. Together, these entities are centralizing the technical framework required to transition traditional securities into a distributed ledger environment.