#MMF
1 article tagged #MMF — curated RWA tokenization coverage.
South Korea Allows Tokenized Securities Backed by Domestic MMFs to Be Sold Overseas
South Korea’s Financial Services Commission (FSC) has issued a regulatory interpretation allowing tokenized securities backed by domestic money market funds (MMFs) to be issued and sold on overseas blockchain markets. This legal pathway permits issuers to offer these digital assets to international investors through private placements, provided they implement strict technical and contractual measures to block domestic residents from purchasing or reselling the tokens. By clarifying that such offerings do not violate the Electronic Securities Act, the FSC aims to foster innovation in the digital asset industry while maintaining rigorous investor protection standards. This development is significant for the RWA market as it provides a controlled framework for cross-border fundraising using stable, low-risk domestic instruments. While local retail participation remains restricted, the move signals South Korea's intent to position itself as a hub for compliant security token offerings. The decision reflects a broader trend among Asian regulators to provide clearer guidelines for the tokenization of traditional financial assets. Ultimately, this policy shift could encourage South Korean firms to leverage global blockchain platforms to access international capital more efficiently.