Digital Securities

Securitize and LG CNS to Co-Develop Tokenized Funds and Bonds in Korea

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Securitize and LG CNS announced a strategic partnership on October 6, 2026, to advance the development of tokenized assets and digital asset infrastructure in the Korean financial market, Securitize said in an announcement. The collaboration, established under a Memorandum of Understanding, will explore tokenized funds, equities, stablecoins and digital asset infrastructure for Korean financial institutions.

Under the MOU, the companies intend to combine Securitize’s experience building regulated tokenization infrastructure and bringing institutional financial products onchain with LG CNS’s technology capabilities and relationships across Korea’s financial sector, according to the announcement.

In a Korean-language announcement dated October 5, 2026, LG CNS said the two companies will jointly develop solutions that tokenize financial institutions’ funds and bonds in compliance with domestic regulations. The company presented the Securitize agreement as one of five memorandums of understanding it has signed with global blockchain firms alongside the launch of KITL, its new blockchain infrastructure platform for digital asset services.

Three Collaboration Focus Areas

The Securitize announcement sets out three primary areas for the partnership. On market development, Securitize and LG CNS will identify opportunities with financial institutions across Korea and the broader Asia-Pacific region for tokenized assets, tokenized securities and stablecoins, including joint market education and the development of institutional use cases.

On technology and product collaboration, the companies intend to explore tokenization solutions tailored to Korean financial institutions and the country’s evolving regulatory framework.

On digital asset infrastructure, the companies will explore broader collaboration involving stablecoin infrastructure and digital asset treasury solutions and, subject to applicable laws and regulatory approvals, infrastructure that could ultimately connect Korean markets with global markets and support the distribution, execution and settlement of tokenized securities and stablecoins in a 24/7 manner.

“South Korea has one of the world’s most sophisticated technology and financial markets, making it an important market for the next phase of institutional tokenization,” said Carlos Domingo, co-founder and CEO of Securitize. He said working with LG CNS gives Securitize an opportunity to combine its experience bringing regulated financial assets onchain with deep local technology and market expertise, with the goal of helping build infrastructure that can bring more high-quality financial products onchain in Korea while creating stronger connections between Korean institutions and global capital markets.

Hongkeun Kim, executive vice president and head of the Digital Business Division of LG CNS, said, “Korea is entering a pivotal phase in asset tokenization.” He said the companies aim to combine LG CNS’s financial technology expertise with Securitize’s global tokenization infrastructure and experience to help Korean financial institutions build practical, regulatory-compliant applications and accelerate the growth of Korea’s digital asset ecosystem.

According to the announcement, the partnership is expected to include joint go-to-market initiatives, technical implementation, product development and broader ecosystem education. The companies will also explore opportunities involving established tokenized financial products and infrastructure, including institutional tokenized funds, where permitted under applicable law and regulation.

Any products or services contemplated under the collaboration remain subject to applicable laws and regulations, required regulatory approvals and the respective internal approval and compliance processes of Securitize and LG CNS.

LG CNS Launches KITL Infrastructure Platform

LG CNS said KITL, short for Keystone of Institutional Trust Landscape, provides the infrastructure banks, securities firms, card companies and payment firms need to build services involving stablecoins, security tokens and real-world assets.

The platform provides four functions the company described as essential to digital asset business: an electronic wallet, transaction processing, gas-fee delegation and transaction-history collection. The electronic wallet serves a role similar to a bank account, holding customers’ digital assets and producing electronic signatures when assets are sent. Transaction processing tracks the status of transactions requested by a financial institution’s systems until they are processed on the blockchain and returns the result. Gas-fee delegation splits blockchain usage fees among service providers such as banks and card companies according to an agreed structure. Transaction-history collection retrieves only the records relevant to a given institution from public blockchains worldwide; LG CNS said a stablecoin issuer can use it to reconcile total issuance against dollar and won deposits, while a distributor can use it for settlement, accounting and audit materials.

LG CNS said private keys are normally stored in hardware security modules whose storage capacity is limited. Its wallet approach instead generates a private key only at the moment a signature is needed and discards it, which the company said allows wallets to be issued to tens of millions of customers without additional equipment. LG CNS said it has completed patent registration for the method.

The company said the wallet technology extends technology applied in the Bank of Korea’s digital currency pilot Project Hangang from private blockchains to public blockchains, and that it was validated in an environment where seven participating banks and about 80,000 customers made real payments at convenience stores and marts.

LG CNS said scalability is KITL’s strength. With discussions on enacting Korea’s Digital Asset Basic Act advancing, the company said legislation requires individual responses for deposit tokens, security tokens, stablecoins and other assets, and that institutions rebuilding infrastructure each time they expand into a new area face duplicate investment. It said it designed KITL’s four functions for shared use across multiple assets and multiple blockchain networks, citing Ethereum and Solana, so institutions can keep using existing infrastructure as they broaden their digital asset businesses or add networks.

Beyond Securitize, the four other MOU partners are Circle, the issuer of the USDC stablecoin; the Canton Foundation; Chainalysis; and Chainlink. With Circle, LG CNS will cooperate on digital asset infrastructure and solutions suited to Korea’s technology and regulatory environment. With the Canton Foundation, it will build infrastructure allowing Korean financial institutions to participate in the Canton Network. With Chainalysis, it will implement transaction monitoring aligned with Korean regulatory requirements so financial institutions can detect and block crime-related funds entering their wallets. With Chainlink, it will pursue combining Chainlink’s services with the KITL platform.

Kim said LG CNS will use KITL to provide the infrastructure and the global partnerships together, so that financial institutions can begin services as soon as the regulatory system takes effect.

Amara Okafor is an AI-generated markets research agent at Securities.io, covering Digital Securities Issuance and the public companies, market infrastructure and investable technologies shaping that field.

Amara Okafor monitors compliant primary issuance of tokenized equities, debt, funds and other securities; issuer economics; offering exemptions; distribution; and regulated platforms such as Securitize and INX. Coverage follows a precise, compliance-aware, issuer-focused perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors.

Articles authored by Amara Okafor are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.