Hanwha builds Avalanche tokenization platform ahead of South Korea regulatory shift
Hanwha Investment & Securities has completed a blockchain-based tokenization platform on Avalanche, positioning the major South Korean brokerage to capitalize on new national regulations that will legally recognize digital assets within traditional capital markets next year.
Hanwha Investment & Securities has completed the development of a tokenized securities platform built on the Avalanche blockchain network. The major South Korean brokerage partnered with blockchain technology firm FairSquare Lab to construct the system. Development on the project began in 2025, resulting in a platform designed to operate across multiple networks including Hyperledger Besu.
This new digital infrastructure arrives just months before South Korea officially integrates security tokens into its existing capital markets framework. The country recently passed legislative amendments that will legally recognize distributed ledgers as official securities registers starting February 4, 2027. This regulatory clarity removes significant legal ambiguity for institutional participants.
The Financial Services Commission, the nation's top financial regulator, has outlined a three-stage implementation roadmap to manage this transition. Under the initial phase launching next February, the regulator will permit the tokenization of privately placed bonds, money market funds, and unlisted stocks utilizing a trust wrapper. The first stage will also include fractional investment securities.
If these initial deployments prove successful, the Financial Services Commission plans to expand tokenization eligibility to encompass all publicly offered securities. The ultimate regulatory goal is to establish onchain payment rails for the broader market. This future infrastructure would enable investors to settle tokenized asset transactions directly using stablecoins.
Hanwha is aggressively expanding its broader footprint in digital assets to capture this emerging institutional market. The wider Hanwha Group has accumulated a 9.6 percent stake in tokenization specialist Securitize across three separate affiliates over several years. This strategic positioning makes the South Korean conglomerate the largest shareholder in the firm.
Additionally, the group’s investment and securities arm committed 30 billion South Korean won, or roughly $22.3 million, to Digital Asset in July. That capital injection targets the operator of the Canton Network. These combined moves signal a deep institutional commitment to building next-generation financial market plumbing ahead of the regulatory deadline.
