[Edaily Marketin Reporter LEE GEON-EOM ] It has been pointed out that for the tokenized securities issuance market to move beyond regulatory frameworks and actually function, financial institutions must step forward as entities responsible for liquidity, settlement, and regulatory compliance. The explanation is that just because the law has been passed does not mean securities will automatically be traded on-chain.

Speakers at the “STO Summit 2026,” held on the 2nd at the Korea Exchange Conference Hall in Yeouido, Seoul, unanimously agreed that South Korea—with the launch of the tokenized securities market scheduled for next February—must now focus on building the market rather than on issuance.

Anna Liu, CEO of Haskey RWA, cited a forecast by the Boston Consulting Group (BCG) to predict that the domestic tokenized securities market will grow to 367 trillion won by 2030. She stated, “Passing legislation and actually enabling securities to be traded on-chain are two separate issues,” adding, “The question now is not ‘whether’ but ‘how.’” The Haseki Group holds approximately 70% of the licensed digital asset exchange market in Hong Kong, with institutional clients accounting for 82% of trading volume.

Hong Kong: Liquidity Considered from the Design Phase… Asset Quality Is Also Key

The point CEO Liu emphasized most was liquidity. He explained that while regulatory-compliant tokenized exchanges have been operating in the U.S. for several years, daily trading volumes often remain as low as a few thousand dollars. “Liquidity doesn’t just happen on its own,” he pointed out, adding, “Both capital and assets must exist on-chain simultaneously.”

Hong Kong incorporated liquidity considerations right from the regulatory design stage. Earlier this year, the Hong Kong Securities and Futures Commission (SFC) permitted secondary trading of tokenized funds, requiring at least one market maker per product. The Hong Kong Monetary Authority (HKMA) has also implemented the funding side on-chain through its stablecoin licensing system and work on tokenized deposits. CEO Liu emphasized, “We shouldn’t simply plan for issuance,” adding, “From day one, we must plan how funds and securities will meet on-chain.”

Some also pointed out that asset quality takes precedence over technology. CEO Liu stated, “While blockchain guarantees the integrity of records after they are recorded, it does not guarantee the integrity of the data being entered,” adding, “Tokenization merely reflects the quality of an asset; it does not create it.” As a starting point, he suggested assets that are standardized—such as money market funds (MMFs) and exchange-traded funds (ETFs)—and for which institutional demand has been confirmed.

Country-Specific Regulations Within a Global Ledger… The Role of Financial Institutions Grows

Cho Won-ho, Head of Business at Lambda256, specifically outlined the role financial institutions should play. He predicted that as AI agents emerge as participants in financial transactions, blockchain—with its transparency and verifiability—will gain attention as the next-generation ledger. He stated, “Financial transactions must proceed according to set rules, not based on probability.”

However, it has been pointed out that the nature of a global ledger does not automatically resolve regulatory issues. This is because Know Your Customer (KYC) requirements, tax regulations, accounting standards, and insolvency protection criteria vary from country to country. Jo emphasized, “Can domestic banks simply trust and adopt the KYC procedures that Singaporean financial institutions have undergone?” He added, “Financial institutions must serve as gateways and firewalls to shield against issues related to each country’s KYC regulations, taxes, and insolvency protection.”

Advice also followed that the nature of the product must be defined before tokenization. Jo pointed out that it is necessary to first determine whether the product is a bond, a property right, or a claim, as well as how to handle issues should they arise, and to ensure that the contractual documents align with the smart contracts. He said, “Features such as suspending transactions from blacklisted wallets and halting trading during sharp price drops must be designed in advance.”

Both Director Cho and CEO Liu cited regulatory compliance as a prerequisite for institutional participation. CEO Liu remarked, “All institutions we work with are underestimating the scale of compliance investment required,” adding, “Legal, tax, and cross-border consistency must be secured first.” He continued, “Ultimately, this market is defined by trust, not technological capability.”

Director Cho remarked, “While financial institutions were watching from the audience last year, this year they took the stage to present their visions and roadmaps,” adding, “With actual products set to launch next year, South Korea will be able to take the lead in the digital asset ecosystem.”

CEO Liu remarked, “South Korea has just completed the most difficult and fundamental steps,” adding, “The remaining task is to build the market.”