Korea Securities Depository set to build securities token platform

Korea Securities Depository (KSD) CEO Lee Soon-ho speaks during a press conference in Seoul, Wednesday. Courtesy of KSD

By Lee Min-hyung

The Korea Securities Depository (KSD) pledged Wednesday to widen its business portfolio into securities tokens by building a relevant platform in line with the rise of the new form of cryptocurrency used for fractional asset ownership.

“We will establish a securities token platform, and set up specific business models for the emerging industry,” KSD CEO Lee Soon-ho told reporters during a press conference. “The KSD already built a medium- to long-term roadmap in the area. But as no specifics have been confirmed as to how the industry will grow, we will play the role of screening the registration of the tokens and managing the total amount of issued tokens here for the time being.”

The remark reflects the growing attention on the securities token industry, after the Financial Services Commission (FSC) approved the issuance and distribution of the tokens in early February. Under the decision, investors can digitally trade fractions of traditional assets ― such as real estate and art ― by using the tokens.

A number of securities firms and financial industry players identify the market as a fresh growth area, as demand for digital asset trading is forecast to grow, as was shown by the rapid rise of cryptocurrencies in recent years.

Lee also promised to provide unwavering support for the soft landing of the industry.

“We are still discussing what other specific roles we can play, as it has not been specifically defined how the industry will be developed here,” he said. “For now, we support any legislative activities within the industry. The KSD will do its best to help securities tokens and fractional investment tokens settle in the market without difficulty.”

The KSD also shared its vision to build a next-generation smart work system. After establishing a global investment support system by January 2026, it will reorganize all the internal digital infrastructure for a smarter working environment, according to the KSD.