South Korea has outlined a three-phase plan to bring stocks, bonds, and funds onchain, with Avalanche presenting its network as the infrastructure behind it. The country's roadmap will move private funds, bonds, stocks, and fractional securities onchain starting in February 2027, with the final phase aiming to connect tokenized securities with stablecoin payments while maintaining investor protection and subscription limits. The plan places South Korea among a growing set of jurisdictions, including major financial centers in Europe and Asia, working on rules for tokenized securities, where traditional assets are represented as blockchain-based tokens that can settle faster than conventional multi-day processes.

The Financial Services Commission (FSC) and the Korea Securities Depository (KSD) announced the roadmap on September 4, 2026. It covers issuance, trading, clearing, settlement, and investor rights for a digital capital market.

South Korea Sets Three-Phase Tokenization Roadmap

According to the Financial Services Commission, the plan begins after amendments take effect on February 4, 2027. Phase one covers private funds, institutional bonds, unlisted stocks, and publicly offered fractional investment securities. Starting with less liquid, institutional-facing assets before opening to all publicly offered securities mirrors a common regulatory approach of testing infrastructure where settlement inefficiencies are most costly.

Phase two expands tokenization to all publicly offered securities. Phase three then links onchain settlement with stablecoin-based payments, while the standards set retail subscription caps and investor protection rules.

The Korea Securities Depository will screen distributed ledger connections for participating firms. Notably, the roadmap gives KSD a role in connecting tokenized securities with existing market infrastructure, positioning the depository as a bridge between the current securities ledger system and onchain records.

Avalanche Points to Korean Institutional Projects

Avalanche has separately described the initiative as powered by its network, though the supplied material distinguishes that claim from the official regulatory announcement.

On August 25, 2026, POSCO International tokenized trade receivables on Intain's Avalanche-based Layer 1. Olea, backed by Standard Chartered's SC Ventures, purchased the receivables with capital. Intain used AI to reconcile invoices and shipping documents before recording the receivables onchain. The parties plan to explore stablecoin cross-border settlement and digital treasury tools.

Mirae Asset Global Investments, which manages about $316 billion, signed an MOU with Ava Labs for tokenized funds. The work covers investor reporting, distributions, and transfer agent operations.

Korean Projects Expand Avalanche-Related Activity

Avalanche-related activity in Korea is expanding across tokenized funds, trade receivables, won stablecoins, and payment infrastructure.

Woori Bank participates in the KRW1 won stablecoin together with custody firm BDACS. The bank fully collateralizes the stablecoin with escrowed won.

Payment processor NHN KCP, which handled about ₩51.5 trillion in 2025, is building Korea's first payment-dedicated chain on AvaCloud. Danal Fintech is developing a compliant stablecoin Layer 1 through AvaCloud within the regulatory sandbox.

Additionally, NHN Cloud added first-party validator support using finance-grade instances, and WeBlock signed an MOU for Korea-focused real-world asset infrastructure. Boston Consulting Group projects the resulting tokenized market at roughly ₩367 trillion by 2030. Key markers ahead include the February 2027 effective date of the amendments and how KSD's screening process defines which firms can connect.