Hanwha Completes Avalanche‑Based Tokenized Securities Platform Ahead of South Korea’s 2027 Rollout

Hanwha Investment & Securities announced the completion of a tokenized securities platform that can operate on Avalanche and the enterprise‑Ethereum client Hyperledger Besu. The development aligns with South Korea’s upcoming legal framework that will recognize distributed ledgers as official securities registers starting February 4, 2027.

Platform Development and Partnerships

The platform was built in collaboration with blockchain technology firm FairSquare Lab, beginning in 2025. It is designed to run across multiple distributed ledgers, giving financial institutions the flexibility to choose between Avalanche, Hyperledger Besu, or other enterprise networks.

Regulatory Context

South Korea’s amendments to the Electronic Securities Act and Capital Markets Act will initially permit tokenization of certain funds, bonds, unlisted stocks and fractional securities. The Financial Services Commission (FSC) has outlined a three‑stage implementation roadmap, with the first stage covering privately pooled money‑market funds and institutional bonds.

Korea Securities Depository (KSD) Infrastructure

The KSD is preparing its own infrastructure to connect with Avalanche, Hyperledger Besu and Hyperledger Fabric. Participation will be limited to approved institutions, and the KSD will act as a network participant to oversee issuance and electronic registration.

International Precedent

Avalanche has already been used for regulated tokenized securities in Japan. In July, Progmat migrated its tokenized securities platform from Corda 5 to a dedicated Avalanche Layer‑1, handling projects valued at over 452 billion yen.

Hanwha’s Broader Tokenization Strategy

Hanwha has expanded its tokenization footprint through stakes in Securitize and Digital Asset, as well as investments in Xangle, Kresus and Dunamu. The conglomerate’s holdings in Securitize total roughly 9.6% across affiliated entities.

Next Steps for Market Participants

Financial firms linking their ledgers to the KSD will need to pass technical screenings and demonstrate operational stability comparable to the existing electronic securities system. Existing licenses will cover tokenized securities activities, though over‑the‑counter intermediaries will require prior consultation with the Financial Supervisory Service.