Securitize and LG CNS have signed a memorandum of understanding covering three areas of digital asset development for South Korean institutions, including tokenized securities and stablecoin infrastructure.
Summary
- The agreement covers market development, tokenization technology, and digital asset infrastructure for financial institutions.
- Planned services remain subject to local laws, regulatory approvals, and both companies’ internal compliance processes.
- LG CNS has launched KITL with wallet, transaction processing, fee support, and record collection functions.
- South Korea’s tokenized securities laws are scheduled to take effect on Feb. 4, 2027.
Securitize announced on Oct. 6 that the companies will explore institutional products and systems connecting Korean financial institutions with global capital markets. Under the agreement, Securitize will contribute regulated tokenization experience, while LG CNS will provide technology services and relationships across Korea’s financial sector.
According to the announcement, their work will include institutional tokenized funds, securities, stablecoins, and digital asset treasury solutions. Any resulting products must pass regulatory review where required, along with each company’s internal approval and compliance procedures.
Securitize and LG CNS plan institutional tokenization services
Through joint business development, the partners plan to identify opportunities in South Korea and other Asia-Pacific markets, the announcement said. Their planned cooperation also covers technical implementation, product development and education for institutions considering tokenized financial products.
In describing the Korean market, Securitize co-founder and CEO Carlos Domingo pointed to the country’s financial and technology sectors and LG CNS’s local expertise.
“Our goal is to help build the infrastructure that can bring more high-quality financial products onchain in Korea,” Domingo said.
For Hongkeun Kim, executive vice president and head of LG CNS’s Digital Business Division, the planned combination of local financial technology and Securitize’s infrastructure should support “practical, regulatory-compliant applications.”
Securitize already has another Korean institutional agreement. As crypto.news reported on Sep. 23, KB Securities signed a three-party tokenized fund agreement with Securitize and the Optimism Foundation, starting with a proposed money market fund for institutional clients on OP Mainnet.
Under that arrangement, KB Securities would handle institutional relationships and securities issuance and distribution, Securitize would supply tokenization infrastructure, and Optimism would provide blockchain technology, according to the brokerage’s release.
Beyond the initial money market fund, KB Securities said it planned a tokenized product based on a KB Asset Management strategy. The brokerage also identified stocks, American depositary receipts, corporate bonds and Korean government bonds as potential later products, depending on local rules.
In the same release, KB Securities said it was examining whether existing tokenized funds from global asset managers could be offered to Korean institutions.
Korean token rules set capital and trading requirements
Ahead of the scheduled Feb. 4, 2027 implementation, the Financial Services Commission has proposed operating requirements for tokenized securities. Its Oct. 1 notice opened a comment period running from Oct. 2 through Nov. 11.
The regulator’s proposed securities token rules, covered on Oct. 2, include stocks, bonds, funds and fractional investment securities. Under the proposal, approved distributed ledgers would record securities ownership while the Korea Securities Depository retains a role in the registration system.
For companies issuing tokenized securities and directly managing customer securities accounts, the FSC proposes at least 4 billion won in equity capital. Its staffing requirements include one account management professional, one internal control professional, and two information technology professionals.
According to the proposal, distributed ledgers must be shared by at least two account management entities alongside the Korea Securities Depository. Operators would be prohibited from charging users directly for access to those ledgers.
On the trading side, the FSC proposes a separate over-the-counter exchange licensing category for debt securities. Retail investors would face an annual net purchase limit of 100 million won on each OTC exchange, calculated after subtracting sales from purchases.
The regulator said the proposed rules will undergo successive approvals following consultation before taking effect in February.
KITL provides wallets and transaction records for financial firms
Alongside the partnership, LG CNS introduced KITL, short for Keystone of Institutional Trust Landscape, on Oct. 6. According to the company, the platform serves banks, securities firms, card companies and payment providers building stablecoin, tokenized securities and real-world asset services.
LG CNS identified four core functions: digital wallets, transaction processing, network fee support and transaction record collection. The company said service providers can share network fees under agreed arrangements.
For record collection, the company said KITL retrieves relevant transactions from public blockchains. Stablecoin issuers can use those records to compare issuance with currency deposits, while distributors can use them for settlement, accounting and audits.
The wallet technology builds on work tested in the Bank of Korea’s Project Hangang, according to LG CNS. Seven banks and about 80,000 customers participated in that project, which included actual payments at convenience stores and supermarkets.
In addition to Securitize, LG CNS named Circle, the Canton Foundation, Chainalysis and Chainlink as partners. The company said their planned work covers stablecoin infrastructure, institutional network access, transaction monitoring and blockchain connectivity.
Securitize’s U.S. listing connects the deal to public investors
For American investors, Securitize’s NYSE-listed SECZ shares provide an existing route to ownership in the tokenization company. In its Oct. 6 announcement, the firm reported approximately $5 billion in assets under management as of September and named BlackRock, Apollo, BNY, Hamilton Lane, KKR and VanEck among its asset management partners.
On July 2, Securitize tokenized its own shares on Solana and Avalanche as it began trading on the NYSE following its combination with Cantor Equity Partners II.
According to the company, the tokens represent the same common stock traded on the exchange. Eligible U.S. investors can access them through its regulated platform, with the same legal, contractual and transfer restrictions applying to the underlying shares.
Korean investment in Securitize also predates the LG CNS agreement. A July 21 report on U.S. regulatory disclosures detailed Hanwha Group’s 9.6% stake in Securitize, totaling 15.69 million shares across affiliates and investment vehicles.
According to those disclosures, a private equity fund managed by Hanwha Asset Management held 5.9%, H Foundation held 3.1%, and Hanwha Investment & Securities held roughly 0.6%. A brokerage spokesperson told local media that each affiliate had independently assessed and carried out its investments.
