Hanwha Builds Tokenized Securities Platform on Avalanche as South Korea Prepares New Rules

South Korea’s Hanwha Investment & Securities has reportedly developed a multi-network tokenized securities platform supporting Avalanche (AVAX) as the country prepares to regulate security tokens under its existing capital markets framework.

The brokerage worked with blockchain technology company FairSquare Lab on the system, with development starting in 2025, according to a Sunday report by Seoul Economic Daily. Rather than being limited to Avalanche, the platform was designed for multiple networks and also supports Hyperledger Besu.

The project comes ahead of regulatory changes scheduled for Feb. 4, 2027, when amendments recognizing distributed ledgers as legally valid securities registers are due to take effect in South Korea.

The platform adds to Hanwha Group’s existing investments across blockchain and tokenization businesses.

Three Hanwha affiliates have accumulated a combined 9.6% stake in Securitize (SECZ) over several years, making the group the company’s largest shareholder.

Hanwha Investment & Securities separately disclosed in July a 30 billion Korean won ($22.3 million) investment in Digital Asset, the operator of Canton Network.

Against that backdrop, South Korea’s Financial Services Commission (FSC) has laid out a three-stage roadmap for implementing the incoming securities token amendments.

Beginning when the new laws take effect in February, tokenization will be permitted for privately placed money market funds and bonds, fractional investment securities, and unlisted stocks structured through a trust wrapper.

If the initial rollout proves successful, the regulator plans to expand the framework to all publicly offered securities. Its longer-term plan is to establish onchain payment rails that would enable investors to settle tokenized securities using stablecoins.