Securitize and LG CNS have entered a strategic partnership to advance tokenized assets and related digital infrastructure for financial institutions in South Korea. The companies signed a memorandum of understanding on October 6 covering market development, technology collaboration and digital asset systems.

Under the agreement, Securitize will contribute its experience with regulated tokenization platforms while LG CNS supplies technology services and established relationships across Korea’s financial sector. The work will target institutional products including tokenized funds, securities, stablecoins and digital asset treasury solutions. Planned services remain subject to local laws, regulatory approvals and each firm’s internal compliance processes.

The collaboration also aims to identify opportunities across the broader Asia-Pacific region and to explore systems that could eventually support round-the-clock distribution, execution and settlement of tokenized securities and stablecoins, subject to applicable rules.

LG CNS Launches Institutional Blockchain Platform

Alongside the partnership announcement, LG CNS introduced KITL, a blockchain infrastructure platform designed for banks, securities firms, card companies and payment providers developing stablecoin, tokenized securities and real-world asset services.

KITL provides four core functions: digital wallets, transaction processing, network fee support and transaction record collection from public blockchains. The wallet technology draws on work tested in the Bank of Korea’s Project Hangang, which involved seven banks and about 80,000 customers making real-world payments.

LG CNS named Circle, the Canton Foundation, Chainalysis and Chainlink among its technology partners for stablecoin infrastructure, institutional network access, transaction monitoring and blockchain connectivity.

South Korea Advances Tokenized Securities Rules

The partnership arrives as South Korea prepares a formal framework for tokenized securities. The Financial Services Commission proposed rules covering stocks, bonds, funds and fractional investment securities, with implementation scheduled for February 4, 2027.

Under the proposals, approved distributed ledgers would record securities ownership while the Korea Securities Depository retains a registration role. Companies issuing tokenized securities and managing customer accounts would need at least 4 billion won, or roughly $3 million, in equity capital. Staffing requirements include specialists in account management, internal controls and information technology.

Distributed ledgers must be shared by at least two account management entities alongside the Korea Securities Depository. Operators would be barred from charging users directly for ledger access. Retail investors would face an annual net purchase limit of 100 million won, or about $75,000, on each over-the-counter exchange for debt securities.

A public comment period on the proposed rules runs through November 11.

Securitize Stock Response and Existing Korean Ties

Shares of Securitize, which trade on the New York Stock Exchange under the ticker SECZ, rose nearly 8% in early trading on October 6 to around $12.60 before closing higher on the day. The company began trading on the NYSE in July following its combination with Cantor Equity Partners II.

Securitize reported approximately $5 billion in assets under management as of September and counts BlackRock, Apollo, BNY, Hamilton Lane, KKR and VanEck among its asset management partners. The firm previously tokenized its own shares on Solana and Avalanche.

Securitize already maintains a separate institutional arrangement in Korea. In September, KB Securities signed a three-party agreement with Securitize and the Optimism Foundation to develop tokenized funds for institutional clients, beginning with a proposed money market fund on OP Mainnet. KB Securities is also examining additional products linked to stocks, American depositary receipts, corporate bonds and Korean government bonds, subject to local rules.

Korean investors already hold a significant stake in Securitize. Affiliates of Hanwha Group previously disclosed ownership of about 9.6% of the company.

The broader tokenized real-world asset market stands at roughly $40 billion. Tokenized equities were valued at about $3.2 billion, up 10.6% over the prior 30 days.

Neither Securitize nor LG CNS has announced specific product launches under the new memorandum. Future offerings will depend on regulatory clearances and internal approvals.