South Korea taps Samsung SDS for blockchain securities system development
With prior groundwork already in place, how will Samsung SDS's new project change things for good?
Samsung SDS, the subsidiary of the Samsung Group, has won a contract for the operation and construction of the token securities platform for the Korea Securities Depository.
In a press release published on 06 May, Samsung announced that the construction will be completed by February 2027.
For those unfamiliar, token securities represent real financial assets that are managed and issued using blockchain technology.
Samsung SDS will develop a platform for token securities for KSD
As part of the agreement, Samsung SDS will transform a testbed into a fully operational system. Previously, it used the testbed only for technology validation and testing. Now, it will convert it into a reliable system that can consistently deliver real services.
For its part, the project aims to modernize the foundation of South Korea’s financial system. Additionally, it also prepares the system for a future where blockchain-based securities are widely adopted and formally regulated.
As part of the preliminary groundwork, the infrastructure needed for token securities has already been analyzed, planned, and tested. So, Samsung’s subsidiary is prepared to make the switch to a fully operational system.
Remarking on the same, Lee Jung-hun, Vice President and Head of Strategy Marketing at Samsung SDS, said,
Through this project, we will support the revitalization of the token securities market and make it a leading success story in the digital asset sector.
South Korea’s 2027 crypto framework
This is in line with the legal framework that South Korea has approved for the issuance and trading of tokenized securities. Scheduled to go into effect in 2027, the new framework will regulate blockchain-based securities and trade them through authorized intermediaries.
This comes with the rise in on-chain activity in South Korea, with transaction surges ranging from $10,000 to $1 million, as confirmed by Chainalysis data.
At the same time, the Financial Services Commission has also planned to remove the 2017 ban completely. This would further allow companies and professional investors to participate in crypto markets.
Final Summary
- To comply with impending regulatory changes, the platform is anticipated to finish by February 2027.
- Project is in line with the new legal framework that will be implemented by 2027.
