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Technology

Securitize stock rises 8% as South Korea prepares tokenization rules

Securitize signed an MOU with LG CNS as South Korea's Financial Services Commission proposes rules for tokenized securities.

CoinDesk AI Desk
· 3 min read
✓ 2 SOURCES CHECKED
Securitize stock rises 8% as South Korea prepares tokenization rules
Image: Cointelegraph

Key takeaways

  1. The stock moved. SECZ traded near $12.60, up nearly 8% in early Tuesday action.
  2. The market is $40 billion. Tokenized real-world assets have grown to roughly $40 billion, with tokenized equities at about $3.2 billion.
  3. Rules land in 2027. South Korea's proposed framework for tokenized securities is set to take effect in February 2027.

What happened

Securitize (SECZ) rose nearly 8% in early Tuesday trading to around $12.60, then pulled back later in the morning.

The move followed the company's announcement that it signed a memorandum of understanding with LG CNS, a South Korean technology company. The two firms will develop tokenized assets and digital asset infrastructure for South Korean financial institutions.

The companies said the partnership will explore tokenized funds, stocks and stablecoins, and look for opportunities across the wider Asia-Pacific market.

LG CNS launched a blockchain infrastructure platform on Tuesday designed to help banks and other financial companies support stablecoins and tokenized securities.

Securitize began trading on the New York Stock Exchange in July after completing its merger with Cantor Equity Partners II.

Why it matters

South Korea is preparing a new regime for tokenized securities. The Financial Services Commission proposed rules last week for the issuance and circulation of tokenized stocks, bonds, funds and other securities, with the framework set to take effect in February 2027.

The partnership could give Securitize an early position in the country as financial institutions prepare for those rules.

The agreement is still a memorandum of understanding and depends on regulatory approval before any products launch, so nothing is live yet.

The tokenized real-world asset market has grown to roughly $40 billion, with much of the early growth in US Treasurys and private credit. Tokenized stocks are beginning to gain ground. Securitize CEO Carlos Domingo said at ETHConf in July that tokenized stocks could help push the overall crypto market to a $5 trillion valuation.

What the data shows

RWA.xyz data put the value of tokenized equities at roughly $3.2 billion, up about 11% over 30 days.

Securitize stock is up about 4% year to date. Average daily trading volume sits near 2.78 million, and the company's market cap stands at roughly $2.12 billion. TipRanks rates technical sentiment on the stock a strong buy.

What is still unclear

  • The LG CNS deal is a memorandum of understanding and depends on regulatory approval, so it is not yet clear when products would launch.
  • One report says Securitize continues to lose money, burn cash and carry debt, which sits apart from the headline stock move.
  • The South Korean framework takes effect in February 2027, and the reports do not specify how quickly institutions adopt tokenized products after that date.

Questions readers ask

Why did Securitize stock rise on Tuesday?

Shares rose nearly 8% in early Tuesday trading to around $12.60 after Securitize announced a memorandum of understanding with LG CNS.

What does the Securitize and LG CNS agreement cover?

It covers tokenized assets and digital asset infrastructure for South Korean financial institutions. The companies said they will explore tokenized funds, stocks and stablecoins, plus opportunities across the wider Asia-Pacific market.

When will South Korea's tokenized securities rules take effect?

The framework is set to take effect in February 2027.

How large is the tokenized real-world asset market?

It has grown to roughly $40 billion, with early growth centered on US Treasurys and private credit. RWA.xyz data put tokenized equities at roughly $3.2 billion.

Sources · 2 publishers

  1. Cointelegraph TIER 1 FIRST REPORT
    Securitize stock jumps 8% amid South Korea tokenization push
  2. CoinCentral TIER 3
    Securitize (SECZ) Stock Jumps 8% on South Korea Tokenization Deal