Securitize and LG CNS have signed a memorandum of understanding to co-develop tokenized asset infrastructure in South Korea, targeting a market that will be formally regulated starting February 2027.
The partnership, announced via press release on October 6, covers tokenized funds, bonds, securities and stablecoin infrastructure. South Korea's Financial Services Commission is expected to finalize a regulatory framework for digital asset tokenization in February 2027, creating the formal legal basis for onchain securities and tokenized financial products to operate in the jurisdiction.
Securitize is a Delaware-based firm that manages digital securities offerings and maintains custody infrastructure for institutional-grade crypto assets. LG CNS, the information technology subsidiary of conglomerate LG Group, operates enterprise software and blockchain services across South Korea's financial and industrial sectors. The partnership pairs Securitize's tokenization expertise with LG CNS's domestic regulatory relationships and technical infrastructure.
South Korea has moved to clarify its stance on digital asset tokenization since 2023, when the FSC began consultations on how to treat tokenized traditional securities. The regulatory timeline announced earlier this year sets February 2027 as the enforcement date for a framework that would permit licensed platforms to issue and custody tokenized versions of bonds, equities and funds. This contrasts with South Korea's approach to spot cryptocurrency trading, which remains heavily restricted and subject to separate anti-money-laundering requirements.
The MOU itself contains no launch dates, specific product roadmap or revenue targets. LG CNS and Securitize have not announced when they expect to have compliant infrastructure operational or whether they will jointly pursue a platform license under the coming regulations. The partnership is explicitly structured as a preparatory collaboration ahead of the February 2027 rule publication.
Securitize has pursued similar partnerships in jurisdictions preparing tokenization rules. In 2024 and 2025, the firm entered agreements with regional financial firms in Singapore, Hong Kong and the United Arab Emirates to position itself as a backend infrastructure provider once those markets finalized tokenization frameworks. The South Korea deal follows the same pattern: establish relationships and technical groundwork before regulations activate.
South Korea's fintech sector and its existing expertise in stablecoin infrastructure make it a target market for tokenization platforms. The country has over 5 million retail crypto traders and multiple licensed digital asset exchanges. A regulated tokenization framework could allow banks and securities firms to issue onchain products without routing through unregulated offshore exchanges. The February 2027 deadline gives the partnership roughly 16 months to prepare infrastructure for potential launch.
