Hanwha Investment & Securities has reportedly completed development of a tokenized securities platform with support for Avalanche, positioning the brokerage ahead of South Korea's planned integration of blockchain-based securities into its regulated capital markets.

Tokenized securities use a distributed ledger as the official record of ownership, replacing or supplementing the electronic registers maintained by centralized institutions today. The approach has been explored by financial institutions in several markets, including Japan, Switzerland and Hong Kong, as a way to align issuance, record-keeping and settlement on shared infrastructure.

The platform was built in partnership with blockchain technology company FairSquare Lab and is designed to operate across multiple distributed ledger networks. Alongside Avalanche, the system supports Hyperledger Besu, an Ethereum-compatible blockchain intended for enterprise applications.

The completion comes as South Korea prepares to recognize distributed ledgers as legally valid securities registers under amendments to the Electronic Securities Act and Capital Markets Act that are scheduled to take effect on Feb. 4, 2027.

Rather than relying on a single technology, South Korea's securities infrastructure is being prepared to accommodate several blockchain networks. The Korea Securities Depository (KSD) is developing infrastructure capable of connecting with Avalanche, Hyperledger Besu and Hyperledger Fabric, giving securities firms greater flexibility in building systems compatible with the incoming regulatory framework.

Avalanche gains a role in institutional tokenization

Hanwha began developing its platform in 2025, with FairSquare Lab constructing the system to support multiple distributed ledgers. The addition of Avalanche expands the blockchain options available to the brokerage as financial institutions prepare for tokenized securities issuance and management.

The architecture also reflects growing institutional interest in networks that can provide controlled participation. Avalanche allows institutions to establish dedicated blockchain environments with restrictions on participants and validator access — features relevant to regulated financial markets, where operators must be able to demonstrate oversight of who can read and write to the system.

According to reports, demand from financial companies was among the factors behind the inclusion of Avalanche in the planned infrastructure, with several firms requesting support for the network during industry consultations and through existing projects.

Avalanche has already gained exposure to regulated tokenized securities in Japan. In July, Progmat migrated its tokenized securities platform from Corda 5 to a dedicated Avalanche Layer 1. At the time, the migration covered active security-token projects representing more than 452 billion yen in underlying assets.

The Japanese system was redesigned to separate business applications from the underlying blockchain, allowing the platform to connect with additional networks in the future while maintaining institutional controls.

BREAKING: Hanwha Investment & Securities, part of the $200B Korean conglomerate, is building its new tokenization platform on Avalanche

Hanwha is bringing traditional assets into global onchain markets, using Avalanche as the infrastructure connecting institutional finance to… pic.twitter.com/uBiLSyi8ax

— Avalanche (@avax) September 7, 2026

South Korea outlines three-stage tokenization rollout

The Financial Services Commission announced a three-stage implementation roadmap on Sept. 4 as authorities prepare for the new legal framework.

The first phase is expected to cover privately pooled money market funds and bonds intended for institutional investors. Unlisted shares issued through trust structures and publicly offered fractional investment securities are also expected to qualify.

The second stage would broaden tokenization to all publicly offered securities. Regulators have not established a specific timetable, with expansion dependent on the initial rollout and the ability of market participants to adopt the required technology.

The final phase would introduce blockchain-based payment infrastructure connected to stablecoins. This could eventually allow the payment component of tokenized securities transactions to operate through blockchain networks, although the timing is partly dependent on pending stablecoin legislation.

South Korea is taking a phased approach rather than shifting its entire electronic securities market onto blockchain at once, with authorities planning progressive testing of securities rights, trading, settlement and onchain payments. The sequence gives firms and the KSD time to test how blockchain-based records interact with the country's existing electronic securities accounts before broader adoption.

Financial companies connecting their distributed ledgers to the KSD will need to undergo technical screening and operational tests. The requirements cover issuance, circulation and contingency procedures, with firms expected to maintain stability comparable to the existing electronic securities infrastructure.

Existing financial investment companies will generally not require a separate license solely to handle tokenized securities if those activities fall within their existing licensed businesses. Firms seeking to intermediate OTC tokenized securities transactions will, however, need prior consultation with the Financial Supervisory Service.

Hanwha expands blockchain and tokenization investments

Hanwha has also broadened its exposure to digital asset infrastructure. Its affiliated entities collectively became the largest shareholder of Securitize, holding a combined 9.6% stake, according to U.S. regulatory filings.

The group has additionally invested in blockchain research company Xangle, Web3 infrastructure provider Kresus, and Digital Asset, the operator of the institutional-focused Canton Network. In July, Hanwha Investment & Securities disclosed a 30 billion won investment in Digital Asset.

The brokerage has further increased its position in South Korea's digital asset sector through an additional investment in Dunamu, the operator of Upbit, taking its ownership stake to 9.84%.

At the infrastructure level, Samsung SDS has also been developing a tokenized securities platform for the Korea Securities Depository. That system is intended to connect blockchain-based records with South Korea's existing electronic securities account infrastructure, supporting issuance, rights management, circulation checks and monitoring.

Taken together, these developments indicate that South Korea's financial sector is moving toward a regulated, multi-network tokenization ecosystem in which traditional securities infrastructure can interact with permissioned and institutionally controlled blockchain networks. How quickly the ecosystem expands beyond the initial institutional-focused phase will depend on the phased rollout's results, firms' technical readiness and the outcome of pending stablecoin legislation.