Securitize and LG CNS Partner on Tokenized Assets, Stablecoins in South Korea

What happened

Securitize and LG CNS have signed a memorandum of understanding to develop digital assets for South Korean institutions. The deal covers tokenized securities, stablecoins and digital asset infrastructure. It also spans market development, tokenization technology and financial institution infrastructure. Securitize said on Oct. 6 that the companies will explore institutional products and systems linking Korean financial institutions to global capital markets.

Under the agreement, Securitize will bring regulated tokenization experience. LG CNS will supply technology services and relationships across South Korea's financial sector. The companies plan joint business development through financial institutions in South Korea and other Asia-Pacific markets.

Their planned work includes institutional tokenized funds, securities, stablecoins and digital asset treasury solutions. The cooperation also covers technical implementation, product development and education for institutions considering tokenized financial products. Resulting products would need regulatory review where required, as well as internal approval and compliance steps.

LG CNS has launched KITL, or Keystone of Institutional Trust Landscape. The blockchain platform targets banks, securities companies, card companies and payment providers. Its services cover stablecoins, tokenized securities and real-world assets. KITL combines digital wallets and transaction processing with network fee support, and can collect records from multiple digital assets and public blockchains.

Carlos Domingo, Securitize co-founder and CEO, said the goal is to help build infrastructure that can bring more high-quality financial products onchain in Korea. Hongkeun Kim, executive vice president and head of LG CNS's Digital Business Division, said the partnership aims to support practical, regulatory-compliant applications. Kim also described Korea as entering a pivotal phase in asset tokenization.

Why it matters

South Korea's tokenized securities laws are scheduled to take effect on Feb. 4, 2027. The Financial Services Commission has proposed operating requirements for tokenized securities. Its Oct. 1 notice opened a comment period from Oct. 2 through Nov. 11. The MOU links global tokenization infrastructure with local financial technology before that framework starts.

The agreement follows another Korean institutional tie-up. KB Securities signed a three-party tokenized fund agreement with Securitize and the Optimism Foundation. That arrangement starts with a proposed money market fund for institutional clients on OP Mainnet. KB Securities would handle institutional relationships and securities issuance and distribution, Securitize would supply tokenization infrastructure, and Optimism would provide blockchain technology. KB Securities also planned a tokenized product based on a KB Asset Management strategy and identified stocks, American depositary receipts, corporate bonds and Korean government bonds as possible later products, depending on local rules.

The companies said approved systems could eventually enable 24/7 distribution, trading and settlement. However, neither company has announced a specific tokenized fund, bond or stablecoin under the new MOU. Future products depend on relevant regulatory approvals and compliance with South Korean laws. Both companies must also complete internal compliance and approval procedures before launching services.

Background

LG CNS previously tested related technology through the Bank of Korea's Project Hangang. That project involved 80,000 participants and seven banks.

What is still unclear

• The companies have not yet named a specific tokenized fund, bond or stablecoin under the agreement.
• Any launch depends on regulatory approvals and compliance with South Korean laws.
• The Financial Services Commission comment period runs from Oct. 2 through Nov. 11.
• Planned services remain subject to local laws, regulatory approvals and internal compliance processes.

Questions readers ask