Securitize and LG CNS collaborate to promote tokenized assets in South Korea

Securitize and LG CNS signed a memorandum of understanding to jointly promote the development of digital assets in South Korean financial institutions

Securitize and LG CNS have signed a memorandum of understanding covering three key areas of digital asset development in South Korean institutions, including tokenized securities and stablecoin infrastructure. The agreement aims to promote market development, tokenization technology and the provision of digital asset infrastructure for financial institutions.

According to the announcement, the planned services will strictly comply with local laws and regulations, regulatory approval requirements and the internal compliance processes of the two companies. Securitize announced on October 6 that the two sides will explore institutional products and systems that connect South Korean financial institutions with global capital markets. Under this agreement, Securitize will contribute its regulated tokenization experience, while LG CNS will provide technical services and industry resources in the Korean financial sector.

According to the announcement, the work scope of both parties includes institutional tokenized funds, securities, stablecoins and digital asset custody solutions. Any resulting product must pass the necessary regulatory review and meet approval and compliance procedures within each company.

Joint construction of an institutional tokenized service system

announcement states that through joint business expansion, partners plan to explore opportunities in South Korea and other Asia-Pacific markets. The two sides also plan to cooperate in technology implementation, product development, and education for institutions considering adopting tokenized financial products.

Describing the potential of the South Korean market, Securitize co-founder and CEO Carlos Domingo emphasized the country's strong financial and technological strength, as well as LG CNS's deep local expertise. "Our goal is to help build infrastructure so that more high-quality financial products will be online in South Korea." Domingo said.

Kim Hongkeun, executive vice president and head of LG CNS's digital business unit, believes that combining local fintech with Securitize's infrastructure is expected to support "practical and regulatory practical applications."

Previously, Securitize has reached a cooperation with another South Korean institution. As reported on September 23, KB Securities signed a three-party tokenized fund agreement with Securitize and the Optimism Foundation to initially launch a money market fund for institutional clients deployed on the OP Mainnet network. Under the arrangement, KB Securities is responsible for institutional relationship maintenance and securities issuance and distribution, Securitize provides tokenization infrastructure, and Optimist provides blockchain technology.

In addition to the original money market funds, KB Securities also plans to launch other tokenized products based on KB's asset management strategy. The broker also listed stocks, American Depositary Receipts (ADRs), corporate bonds and South Korean government bonds as potential follow-on products, depending on local regulations. At the same time, KB Securities is evaluating whether it can provide existing tokenized funds from global asset managers to South Korean institutions.

Korean token rules set capital and trading requirements

On the eve of the regulatory framework scheduled to take effect on February 4, 2027, the Korea Financial Services Commission (FSC) has issued operational requirements for tokenized securities. The FSC issued a notice on October 1, opening a one-month public consultation period that lasts from October 2 to November 11.

The draft securities token rules proposed by the FSC on October 2 cover stocks, bonds, funds and fractional investment securities (some investment securities). Under the proposal, the approved distributed ledger will be used to record ownership of securities, while the Korea Securities Depositary (KSD) will continue to play a role in the registration system.

For companies that issue tokenized securities and directly manage customers 'securities accounts, the FSC proposes that their equity capital must reach at least 4 billion won. In terms of staffing, one account management professional, one internal control professional and two information technology professionals are required.

The proposal stipulates that distributed ledgers must be shared by at least two account management institutions and the Korea Securities Depositary. Operators are prohibited from directly charging users for access to these ledgers.

In terms of transactions, the FSC proposes to establish a separate over-the-counter (OTC) exchange licensed class for debt securities. The annual net purchase limit for retail investors on each OTC exchange is US$100 million (Note: 100 million won, or 100 million won), calculated as the net purchase amount after deducting the amount sold.

Regulators said the proposed rules will go through a continuous approval process after consultation and will finally come into effect in February.

KITL平台为金融机构提供钱包及交易记录服务

与此同时，LG CNS于10月6日推出了名为KITL（Keystone of Institutional Trust Landscape，机构信任格局基石）的平台。据该公司介绍，该平台服务于银行、证券公司、卡公司和支付提供商，旨在支持其构建稳定币、代币化证券及真实世界资产（RWA）服务。

LG CNS指出了KITL的四大核心功能：数字钱包、交易处理、网络费用支持以及交易记录收集。该公司表示，服务提供商可以根据约定安排共享网络费用。

关于交易记录收集，KITL能够从公共区块链中提取相关交易数据。稳定币发行方可利用这些记录来比对发行量与货币存款情况；分销商则可将其用于结算、会计和审计。

据悉，该钱包技术建立在韩国银行“Hangang项目”的测试基础之上。该项目共有七家银行和约8万家客户参与，其中包括在便利店和超市进行的实际支付测试。

除Securitize外，LG CNS还宣布Circle、Canton Foundation、Chainalysis和Chainlink为其合作伙伴。该公司表示，双方的工作计划涵盖稳定币基础设施、机构网络接入、交易监控及区块链连通性。

Securitize的美国上市连接公众投资者

For U.S. investors, Securitize's SECZ shares listed on the New York Stock Exchange provide an existing channel to participate in the company's ownership investments. In an October 6 announcement, Securitize reported that it had assets under management at approximately US$5 billion as of September and listed asset management partners such as BlackRock, Apollo, BNY, Hamilton Lane, KKR and VanEck.

On July 2, while merging with Cantor Equity Partners II and starting trading on the New York Stock Exchange, Securitize also tokenized its own shares on the Solana and Avalanche blockchains. According to the company, these tokens represent the same rights as exchange-traded common shares, are accessible to eligible U.S. investors through its regulated platform, and the same laws, contracts and transfer restrictions applicable to the underlying shares apply to these tokens.

South Korea's investment in Securitize precedes this cooperation with LG CNS. A U.S. regulatory disclosure report on July 21 showed that Hanwha Group holds 9.6% of Securitize and holds a total of 15.69 million shares through subsidiaries and investment vehicles. According to the disclosure, private equity funds managed by Hanwha Asset Management hold 5.9%, H Foundation holds 3.1%, and Hanwha Investment Securities holds approximately 0.6%. A brokerage spokesperson told local media that each subsidiary independently evaluated and implemented its investment behavior.