Hanwha Investment & Securities has reportedly completed development of a tokenized securities platform that supports Avalanche, positioning the brokerage ahead of South Korea’s planned integration of blockchain-based securities into its regulated capital markets.
The platform was developed with blockchain technology company FairSquare Lab and is designed to operate across multiple distributed ledger networks. Alongside Avalanche, the system supports Hyperledger Besu, an Ethereum-compatible blockchain designed for enterprise applications.
The platform’s completion comes as South Korea prepares to recognize distributed ledgers as legally valid securities registers under amendments to the Electronic Securities Act and Capital Markets Act scheduled to take effect on Feb. 4, 2027.
South Korea’s securities infrastructure is being prepared to accommodate several blockchain networks rather than relying on a single technology. The Korea Securities Depository is developing infrastructure capable of connecting with Avalanche, Hyperledger Besu and Hyperledger Fabric, giving securities firms greater flexibility in building systems compatible with the new regulatory framework.
Avalanche gains a role in institutional tokenization
Hanwha began developing its platform in 2025, with FairSquare Lab building the system to support multiple distributed ledgers. The addition of Avalanche expands the blockchain options available to the brokerage as financial institutions prepare for tokenized securities issuance and management.
The architecture also reflects growing institutional interest in networks that can provide controlled participation. Avalanche allows institutions to establish dedicated blockchain environments with restrictions on participants and validator access, features that can be relevant to regulated financial markets.
According to reports, demand from financial companies was among the factors behind the inclusion of Avalanche in the planned infrastructure. Several firms reportedly requested support for the network during industry consultations and through existing projects.
Avalanche has already gained exposure to regulated tokenized securities in Japan. In July, Progmat migrated its tokenized securities platform from Corda 5 to a dedicated Avalanche Layer 1. At the time, the migration covered active security-token projects representing more than 452 billion yen in underlying assets.
The Japanese system was redesigned to separate business applications from the underlying blockchain, allowing the platform to connect with additional networks in the future while maintaining institutional controls.
South Korea outlines three-stage tokenization rollout
The Financial Services Commission announced a three-stage implementation roadmap on Sept. 4 as authorities prepare for the new legal framework.
The first phase is expected to cover privately pooled money market funds and bonds intended for institutional investors. Unlisted shares issued through trust structures and publicly offered fractional investment securities are also expected to qualify.
The second stage would broaden tokenization to all publicly offered securities. Regulators have not established a specific timetable, with expansion dependent on the initial rollout and the ability of market participants to adopt the required technology.
The final phase would introduce blockchain-based payment infrastructure connected to stablecoins. This could eventually allow the payment component of tokenized securities transactions to operate through blockchain networks, although the timing is partly dependent on pending stablecoin legislation.
South Korea is taking a phased approach rather than shifting its entire electronic securities market onto blockchain at once, with authorities planning progressive testing of securities rights, trading, settlement and onchain payments.
BREAKING: Hanwha Investment & Securities, part of the $200B Korean conglomerate, is building its new tokenization platform on Avalanche
Hanwha is bringing traditional assets into global onchain markets, using Avalanche as the infrastructure connecting institutional finance to… pic.twitter.com/uBiLSyi8ax
— Avalanche🔺 (@avax) September 7, 2026
Financial companies connecting their distributed ledgers to the KSD will need to undergo technical screening and operational tests. The requirements include issuance, circulation and contingency procedures, with firms expected to maintain stability comparable to the existing electronic securities infrastructure.
Existing financial investment companies will generally not require a separate license solely to handle tokenized securities if those activities fall within their existing licensed businesses. Firms seeking to intermediate OTC tokenized securities transactions will, however, need prior consultation with the Financial Supervisory Service.
Hanwha expands blockchain and tokenization investments
Hanwha has also expanded its broader exposure to digital asset infrastructure. Its affiliated entities collectively became the largest shareholder of Securitize, holding a combined 9.6% stake, according to U.S. regulatory filings.
The group has also invested in blockchain research company Xangle, Web3 infrastructure provider Kresus, and Digital Asset, the operator of the institutional-focused Canton Network. In July, Hanwha Investment & Securities disclosed a 30 billion won investment in Digital Asset.
The brokerage has further increased its position in South Korea’s digital asset sector through an additional investment in Dunamu, the operator of Upbit, taking its ownership stake to 9.84%.
At the infrastructure level, Samsung SDS has also been developing a tokenized securities platform for the Korea Securities Depository. That system is intended to connect blockchain-based records with South Korea’s existing electronic securities account infrastructure, supporting issuance, rights management, circulation checks, and monitoring.
Together, these developments indicate that South Korea’s financial sector is moving toward a regulated, multi-network tokenization ecosystem in which traditional securities infrastructure can interact with permissioned and institutionally controlled blockchain networks.
