Hanwha Investment & Securities has reportedly completed a token-securities platform capable of operating with Avalanche and Hyperledger Besu as South Korea prepares to introduce a regulated framework for blockchain-recorded securities.
Seoul Economic Daily reported on September 6, citing unnamed blockchain-industry sources, that development began in 2025 and was carried out by FairSquare Lab. Hanwha has not publicly confirmed the platform’s completion, architecture, or launch, so these details should be treated as reported rather than verified.
The development comes two days after South Korea’s Financial Services Commission published a three-stage roadmap for tokenizing conventional securities, starting with limited categories of funds, bonds, unlisted shares, and fractional-investment securities when amended legislation takes effect February 4, 2027.
Avalanche described the initiative as bringing South Korea’s capital-markets infrastructure onchain, “powered by Avalanche.” However, the FSC’s official policy announcement does not designate Avalanche, or any other blockchain, as the exclusive infrastructure for the national program.
Infrastructure Now, Not Yet a Live Market
The reported completion of Hanwha’s platform doesn’t mean the company has begun issuing or trading tokenized securities. No tokenized product, issuer, or launch date has been announced, and there’s no confirmation Hanwha’s system has completed the reviews needed to connect with the Korea Securities Depository (KSD).
The platform reportedly supports both Avalanche and Hyperledger Besu, letting Hanwha test different configurations instead of committing to one network.
Avalanche’s technology can support permissioned environments where approved operators control who may submit transactions, and its documentation names regulated institutions as potential users.
Such controls could help meet identity-verification and governance requirements, but don’t by themselves make a system legally compliant; it must still satisfy Korean securities law, KSD standards, and investor-protection rules.
South Korea’s Phased Approach to Tokenized Securities
South Korea’s amended Electronic Securities Act formally recognizes securities recorded through distributed ledgers. The FSC emphasizes a token security is a method of recording a security, not a separate asset category, so existing rules on issuance, disclosure, and investor protection still apply.
| Stage | Planned Scope | Timing |
| First stage | Institutional private money-market funds and bonds, trust-based tokenization of unlisted shares, and publicly offered fractional-investment securities | February 2027 |
| Second stage | Expansion toward publicly offered conventional securities where technically feasible | No fixed date |
| Third stage | Onchain settlement using stablecoins or other approved payment instruments | No fixed date |
Table 1. South Korea’s Planned Token-Securities Rollout
Later stages depend on the first rollout’s stability, market demand, and separate stablecoin legislation. The government also plans to test tokenizing exchange-listed shares with the Korea Exchange, though that remains a pilot and shouldn’t be read as approval for public stocks to trade freely onchain by February.
How Hanwha’s Platform Would Connect to KSD
Under the FSC’s proposed structure, securities firms will build distributed-ledger infrastructure and connect those systems with KSD’s central token-securities platform. KSD will review proposed ledgers against standardized requirements covering participants, consensus mechanisms, and security, with testing required before connection.
A brokerage can build its own blockchain platform while KSD continues overseeing legally recognized registration information. The framework doesn’t describe a single open public blockchain anyone can use; it envisions regulated networks involving KSD, securities firms, and other authorized institutions.
A report that KSD’s standards can accommodate Avalanche would make Hanwha’s work potentially relevant to national infrastructure, but wouldn’t establish Avalanche as the exclusive blockchain for Korea’s capital market.
Comparing Avalanche’s Framing With the FSC’s Language
Avalanche said South Korea was bringing its “entire capital markets infrastructure onchain,” powered by Avalanche. The confirmed regulatory announcement is narrower: the FSC wants to connect issuance, trading, clearing, settlement, and underlying assets within a broader framework, with a phased rollout starting with selected products.
It didn’t say every Korean stock, bond, or fund would move onchain, and didn’t name Avalanche as the government’s selected network.
Several networks may be used by different institutions while still connecting with KSD. Hanwha’s reported support for Avalanche shows the technology is being considered by at least one participant, but doesn’t prove a national or exclusive deployment.
There’s also no confirmation that using Avalanche would require every transaction to use the publicly traded AVAX token; fees and settlement assets would depend on the final architecture.
Hanwha’s Broader Multi-Network Blockchain Strategy
The reported platform fits with Hanwha’s previously announced efforts to build blockchain-based financial infrastructure. In December 2025, the company signed an agreement with Kresus Labs covering wallets and tokenization, then a separate agreement with Digital Asset in April 2026 to explore the Canton Network.
These partnerships don’t establish that Kresus or Canton is involved in the reported Avalanche platform, but they show Hanwha is evaluating several technologies rather than committing to one.
A multi-network approach may help the company connect with different financial systems, though it could also create challenges around interoperability and preventing duplicated securities across networks.
The Road Ahead for Korea’s Token-Securities Framework
The immediate milestone is publication of South Korea’s supporting rules. The FSC plans to place amendments to subordinate regulations under public consultation, and KSD and participating firms must complete infrastructure and connection testing before the first stage begins in February 2027.
For Hanwha, confirmation from the company or KSD would establish the platform’s final architecture, regulatory status, and launch date, and any initial issuance would reveal whether Avalanche is used in production or remains one of several supported options.
What this means for you: Hanwha has reportedly prepared infrastructure that could support tokenized securities on Avalanche, but no public product or trading service has launched. South Korea’s regulatory roadmap is confirmed, while claims that its entire capital market will run exclusively on Avalanche aren’t supported by the FSC’s announcement.
This is not financial advice. Building blockchain infrastructure does not guarantee regulatory approval, commercial adoption, transaction volume, or demand for any associated cryptocurrency.
