FSC Introduces Policy Roadmap on Digital Transformation and Tokenization of Securities Issuance and Circulation

The Financial Services Commission held the third private-public joint consultative body meeting on the tokenization of securities and introduced a policy roadmap on the digital transformation of securities issuance and circulation on September 4. Key Policy Directions a) Three-phase development of infrastructure for tokenized securities issuance A three-phase roadmap will be adopted for securities companies and the Korea Securities Depository (KSD) to develop relevant infrastructures facilitating the issuance of tokenized securities. In this regard, the tokenization of securities will include not just fractional investment securities but also conventional securities types, such as stocks, bonds, and funds. With an update to the Act on Electronic Registration of Stocks and Bonds (the Electronic Registration Act hereinafter) scheduled to take effect from February 4, 2027, security tokens (or tokenized securities) are legally recognized as a digitized form of securities. Thus, the first phase of the tokenization of securities will begin from February 2027. During the first phase, the tokenization of securities will be sought for (a) privately pooled money market funds (MMFs) and bo...