Samsung SDS has secured a contract to develop and manage a tokenized securities platform for the Korea Securities Depository (KSD), signifying progress in enhancing Korea’s digital asset framework.
Tokenized securities are traditional financial assets, like stocks, bonds, or real estate, that are created or documented on distributed ledgers, including blockchain, enabling ownership and rights to be monitored and exchanged securely in digital format.
The framework streamlines post-trade activities and allows for fractional ownership, facilitating participation for retail investors.
Tokenized securities are becoming more popular as interest increases in converting financial products into tokens and transforming assets like data, artwork, and real estate into tradable digital assets.
Through the project, KSD aims to integrate its current electronic securities account system with a blockchain ledger to enhance issuance and rights management for tokenized securities, while gearing up for future market growth.
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Samsung SDS plans to establish a comprehensive volume management system to oversee the issuance and circulation of tokenized securities in real time, guaranteeing transparency in all transactions and enabling market participants to trade confidently.
The firm will also develop essential infrastructure required for the platform’s operation, such as a gateway system, a framework for managing and operating blockchain nodes, and an architecture for a distributed ledger system.
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The goal is to finalize the platform by February 2027, evolving the existing testbed, primarily utilized for technology validation, into a comprehensive system that can manage live transactions and guarantee reliable service operations.
Samsung SDS is enhancing its knowledge in tokenized securities, undertaking a functional analysis project in 2024 and creating a testbed platform in 2025.
“Leveraging our expertise in tokenized securities, blockchain, and IT infrastructure, we will implement this initiative reliably,” stated Lee Jeong-heon, executive vice president of Samsung SDS’ strategic marketing office.
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“Our goal is to invigorate the tokenized securities market and transform this initiative into a leading success narrative in digital assets,” adds Lee.