Tokenization platform Securitize has signed a memorandum of understanding (MOU) with LG CNS, the IT services arm of South Korea's LG Group, to study tokenized securities and digital asset infrastructure as the country sets regulations for blockchain-based financial instruments. Securitize announced the agreement in a post on X.

For Securitize, the deal opens a path into the South Korean financial sector at a moment when the country is preparing rules for the issuance and trading of tokenized shares, bonds, funds, and other securities.

Shares Rise on the Announcement

Securitize shares (SECZ) rose 8% in early Tuesday trading to reach $12.60 before giving back part of the gain over the rest of the session. The stock began trading on the New York Stock Exchange in July, when the company completed its merger with special purpose acquisition company Cantor Equity Partners II.

What the MOU Covers

Under the memorandum, Securitize and LG CNS will examine the potential of tokenized assets and digital asset infrastructure for South Korean financial firms. The two companies will review business prospects tied to tokenized funds, stocks, and stablecoins, and will also consider possible projects in other parts of the Asia-Pacific region.

LG CNS has been stepping up its own blockchain initiatives. On Tuesday, the company unveiled a blockchain platform designed to help banks and other financial institutions offer stablecoins and tokenized assets. The same-day debut underscores the LG Group unit's push into financial blockchain services, an area that overlaps with the tokenized funds, stocks, and stablecoins the two companies plan to review.

South Korea Prepares Tokenized Securities Rules

The alliance is timed to a regulatory turning point. South Korea's Financial Services Commission (FSC), the country's top financial regulator, released an outline of regulations for the issuance and trading of tokenized stocks, bonds, funds, and other securities on October 1, and the proposed framework is set to take effect on February 4, 2027.

Tokenized securities are conventional instruments such as stocks, bonds, and funds that are issued or traded using blockchain technology. Under the FSC's published outline, financial institutions would receive guidelines for using blockchain to issue and trade these conventional securities.

The regulatory evolution adds relevance to the Securitize–LG CNS partnership, as both firms have been exploring products and infrastructure that could enable financial institutions to operate under the new regime.

Tokenized Stocks Become a Larger Market

Securitize is already a well-established player in the tokenized real-world asset (RWA) space, with a business that deals in assets such as US Treasuries and private credit. Tokenized stocks are becoming an increasingly important part of the sector as well. Data from on-chain analytics platform RWA.xyz indicate that the value of tokenized stocks stands at approximately $3.2 billion, an increase of 10.6% compared with the previous 30 days, while the entire tokenized real-world asset space has expanded to about $40 billion — meaning tokenized equities account for roughly 8% of the broader tokenized RWA market.

Carlos Domingo, Securitize's chief executive, said at ETHConf in July that the adoption of tokenized stocks could enable the crypto market to be valued at a minimum of $5 trillion.

Securitize Extends Its Asia-Pacific Reach

The memorandum marks another step in Securitize's effort to build partnerships with financial institutions outside the United States. As South Korea's securities issuance framework takes shape, financial firms may need a platform that enables issuance, settlement, and compliance — an area where the partnership with LG CNS allows Securitize to test the waters.

Neither company has made an official announcement about which products will be launched through the memorandum, or when. The partnership will explore the tokenization of funds, stocks, and stablecoins in anticipation of South Korea's new regulatory regime. From here, the observable markers are procedural: whether the FSC moves from outline to final rules ahead of the February 4, 2027 effective date, and whether the two companies convert their study agreement into named products, launch timelines, or commercial terms.