Gov't seeks infrastructure to tokenize traditional securities beyond fractional investments
The government plans to build infrastructure to tokenize traditional securities such as stocks, bonds and funds, expanding security token offerings (STOs) beyond fractional investment products, as the system is set to launch next February. The Financial Services Commission and the Financial Supervisory Service unveiled the policy direction, Friday. Tokenized securities are digital representations…
The government is set to develop infrastructure for tokenizing traditional securities, including stocks, bonds, and funds, as part of an expansion of security token offerings (STOs) beyond fractional investment products. This infrastructure project is scheduled to launch in February next year. Tokenized securities are digital representations of securities that are issued and traded through blockchain-based distributed ledger technology.
It is crucial to distinguish tokenized securities from fractional investing, as the former refers to the method used to issue a security, while the latter pertains to a specific category of investment. The technology behind tokenization can be applied to various types of conventional securities, not just fractional investment products.
The government's tokenization plan will be implemented in three distinct phases. In the initial phase, the focus will be on privately placed money market funds, corporate bonds for institutional investors, unlisted stocks, and publicly offered fractional securities.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
