Major Firms Pivot as South Korea Legalizes Tokenized Securities — Here’s What Changes

South Korea just rewired its financial infrastructure—and the big players are already moving.

The Financial Services Commission's formal green light for tokenized securities isn't just regulatory paperwork. It's a market signal that's redirecting capital, talent, and corporate roadmaps overnight. Traditional finance giants and crypto-native firms alike are now racing to build the pipes for this new asset class.

Why the scramble?

Tokenization cuts out layers of custodians, registrars, and settlement agents. It turns illiquid assets—real estate, private equity, even royalties—into programmable, divisible tokens that trade on digital markets. For institutions, that means lower costs, faster settlements, and global investor access. For the market? A potential liquidity explosion.

The institutional pivot is already visible.

Major brokerages and banks are spinning up dedicated digital asset divisions. Crypto exchanges are fast-tracking compliance frameworks to list these tokens. Venture funding is shifting toward infrastructure plays: custody solutions, regulatory tech, and interoperability protocols. The land grab for first-mover advantage is fully underway.

But it's not just about technology.

This shift forces a reckoning with legacy systems and mindsets. Traditional finance's usual playbook—slow, incremental, and heavily intermediated—doesn't work here. The firms that thrive will be those that embrace programmability, automate compliance, and build for a 24/7 global market. Everyone else gets disintermediated.

A cynical footnote for the finance traditionalists: Wall Street spent decades building fee-heavy middlemen—tokenization just built the bypass. The race isn't to adapt; it's to avoid obsolescence.

South Korea's move won't stay isolated. It sets a template for other major economies watching from the sidelines. When liquidity floods into tokenized markets, regulators elsewhere will face a simple choice: lead, follow, or get left with the legacy assets nobody wants. The smart money isn't waiting to find out which they choose.

Tension between old tech vs new tech

Boston Consulting Group projects that tokenized securities could more than triple by the end of the decade, from $80 billion today to approximately $250 billion by 2030. South Korean startups and firms alike are eager to tap into the sector’s expected growth.

But fintech startups have complained that securities firms have been given priority in the pre-licensing process.

“Securities firms are at the center of the STO ecosystem,” explained Song. “Current regulations require tokenized securities to be issued by licensed securities companies with regulatory approval.”

Korea’s tokenization legislation separates issuance and distribution of tokenization as a way to protect investors and prevent conflicts of interest.

“Blockchain and fintech companies have been positioned to serve primarily as technology enablers rather than acting as issuers themselves,” said Song. 

But, blockchain firms warn that relying solely on large financial institutions could delay innovation in the rapidly evolving digital asset market.

South Korea’s main financial watchdog, the Financial Services Commission (FSC), unexpectedly postponed a January 14 vote on the pre-approval of tokenized STO over-the-counter trading platforms after mounting criticism.

Lawmakers and blockchain innovator LucentBlock said the proposed licensing framework sidelines early sandbox pioneers in favor of large institutional players.

Hanwha’s on-chain ambition

Hanwha Investment and Securities is looking to transform into a digital asset-specializing securities firm.  

At its 2026 management strategy meeting held last year, CEO Byung-ho Jang said global financial markets are rapidly reorganizing around digital assets.

He said the firm aims to strengthen its competitiveness in global digital finance by focusing on real-world asset (RWA) tokenization.

The firm aims to support on-chain transactions in which issuance, custody, and trading of digital assets are handled in real time on blockchain networks. It plans to build a network of a blockchain capable of processing large volumes of transactions with high speed and scalability.

On January 29, Hanwha Securities said it plans to invest KRW 10 billion ($7 million) in digital asset platform, Xangle, to strengthen cooperation on digital asset data, research and expanding global business infrastructure.  

Mirae Assets tokenization breakout moment

RWA tokenization is shaping up as the next major investment theme. 

Mirae Asset Group plans to develop an investment ecosystem built around RWA as a way to drive future growth for clients.

“Capital is often locked up for more than seven years in venture investments,” said Chairman Hyeon-Joo Park. “Tokenization could change that by making these assets tradable.”

Park told Korean media that his firm plans to bring about KRW 120 trillion ($82 billion) in client assets on-chain as part of a round-the-clock digital trading ecosystem.

Building tokenization railing

Despite regulatory clarity, Korea’s STO market is expected to scale slowly.

South Korea has provisionally set January 2027 as the date for full-scale market operation. This leaves 12 months to establish investor protection, operational rules, as well as a blockchain-based account management system.

Starting from February 2026, regulators will formulate these protocols with a consultative group consisting of the Korea Securities Depository, the Korea Financial Investment Association, as well as a host of securities and fintech companies and academics.

Woosuk Song said regulators are wary of tokenized assets that are backed by illiquid and hard-to-value assets. These will need enhanced disclosure, clear risk warnings, and stricter sales practices before they are available on the market.

He said Korea’s early phase of tokenized securities will most likely focus on assets with predictable returns, such as real estate-backed securities and project finance investments.

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