South Korea to Move Its Capital Market On-chain on Avalanche
South Korea is initiating a comprehensive, phased transition of its capital markets infrastructure to blockchain technology, utilizing the Avalanche network. The Financial Services Commission and the Korea Securities Depository are spearheading this roadmap to bring stocks, bonds, and funds onchain, covering the entire lifecycle from issuance to settlement. This initiative aims to unify the national financial network, moving beyond simple fractionalization to full-scale digital market integration. The project will unfold in stages, with new regulations for tokenized securities officially taking effect on February 4, 2027. Pilot programs for exchange-traded stocks are planned in collaboration with the Korea Exchange, drawing on insights from NYSE and Nasdaq experiments. Future phases include the integration of stablecoins for onchain settlement and the establishment of specific capital requirements for account management entities. This move represents one of the largest government-led tokenization efforts globally, signaling a major shift toward institutionalizing digital securities within a national regulatory framework.
- South Korea will transition capital markets to blockchain using Avalanche infrastructure.
- New regulations for tokenized securities are scheduled to take effect February 4, 2027.
- Phased rollout includes stocks, bonds, and funds with future stablecoin settlement integration.
- Retail investors face a 100 million won annual net purchase limit on OTC venues.
Avalanche is a high-performance, layer-one blockchain platform known for its sub-second finality and custom subnet architecture, which allows institutions to create private, compliant, and scalable networks. The Korea Securities Depository is the central securities depository of South Korea, responsible for the safekeeping and settlement of securities, while the Financial Services Commission serves as the country's primary financial regulator.