Hanwha Investment & Securities has completed development of a tokenized securities platform that supports Avalanche and Hyperledger Besu. The system, built with blockchain technology firm FairSquare Lab, positions the brokerage for South Korea’s planned integration of distributed-ledger securities into the regulated capital markets framework beginning February 4, 2027.

Work on the platform began in 2025. Industry sources indicate the project is now finished and designed to operate across multiple networks rather than relying on a single blockchain. Avalanche enables institutions to create dedicated networks with controlled participation and validators, while Hyperledger Besu provides an enterprise Ethereum-compatible option already used by other Korean financial firms.

Regulatory Framework Takes Shape

Amendments to the Electronic Securities Act and Capital Markets Act will legally recognize distributed ledgers as securities registers. Tokenized instruments will remain subject to existing securities laws rather than forming a separate asset class. The Financial Services Commission has outlined a three-stage implementation roadmap.

In the first stage, tokenization will cover privately placed money market funds and bonds intended for institutional investors, unlisted shares issued through a trust structure, and publicly offered fractional investment securities. The second stage would expand to all publicly offered securities, with timing dependent on results from the initial phase and technology adoption. The final stage aims to introduce on-chain payment infrastructure linked to stablecoins, subject to separate legislation.

The Korea Securities Depository is preparing infrastructure that can connect with Avalanche, Hyperledger Besu, and Hyperledger Fabric. Participation will be restricted to approved institutions, including securities companies and the depository itself. The depository will join the networks directly to oversee total issuance volumes and electronic registration data. Demand from financial firms influenced the decision to include Avalanche among supported technologies.

Infrastructure and Operational Requirements

Securities firms linking distributed ledgers to the Korea Securities Depository must pass screening and operating tests under technical guidelines. Reviews will examine issuance and circulation functions as well as contingency measures for system disruptions. Firms must maintain operational stability comparable to the existing electronic securities system.

Existing licensed financial investment companies will not require a separate license solely for tokenized securities activities that fall within their current business scope. Companies seeking to intermediate over-the-counter transactions in tokenized securities will need prior consultation with the Financial Supervisory Service.

Retail investor limits are also under consideration. Individual subscriptions to certain non-monetary trust beneficiary certificates would be capped at the lower of 30 million won or 5 percent of total issuance. Annual net purchases by retail investors on each over-the-counter exchange would be limited to 100 million won.

Hanwha’s Broader Tokenization Activities

The platform forms part of Hanwha’s wider investments in tokenization infrastructure. Through three affiliated entities, Hanwha Group has become the largest shareholder in Securitize with a combined 9.6 percent stake. Hanwha Investment & Securities also invested 30 billion won, equivalent to approximately 22.3 million dollars, in Digital Asset, the company behind the Canton Network focused on institutional financial markets.

Samsung SDS is developing a separate token securities platform for the Korea Securities Depository. That system is expected to support issuance, circulation checks, rights management, and monitoring once the new framework begins operating.

Avalanche has previously been used for regulated tokenized securities in other markets, including a migration of active projects by Japan’s Progmat platform. In South Korea, the combination of private-sector platform development and public infrastructure preparation indicates preparations are advancing in parallel with the regulatory timeline.