Shares of tokenization platform Securities rose sharply on Tuesday after the company announced a partnership with South Korean technology company LG CNS as the country prepares to introduce a new framework for tokenized securities.
Securities ( SECZ ) rose nearly 8% to around $12.60 in early trading Tuesday, outperforming most major crypto-linked stocks, before pulling back in the morning. The company began trading on the New York Stock Exchange in July after merging with special purpose acquisition firm Cantor Equity Partners II.
Securitize and LG CNS signed A Memorandum of Understanding to develop tokenized assets and digital asset infrastructure for South Korean financial institutions. The companies said the partnership will explore tokenized funds, stocks and stablecoins, as well as identify opportunities across the broader Asia-Pacific market.
The deal comes as South Korea prepares to implement a new framework for tokenized securities. Last week, the country’s Financial Services Commission Recommended Rules governing the issuance and circulation of tokenized stocks, bonds, funds and other securities, the framework will come into effect in February 2027.
The partnership potentially gives Securities an early foothold in South Korea as financial institutions prepare for the new system. LG CNS on Tuesday launched a blockchain infrastructure platform designed to help banks and other financial institutions support stablecoins and tokenized securities.
Related: Securities for the Public Market, Cantor Targets Tokenized IPO
Stocks emerge as the next major tokenization market
Securitization has become a major player in the tokenized real-world asset market, which has grown to nearly $40 billion. Much of the initial growth has been focused on US Treasuries, private debt and other yield-bearing assets, but tokenized stocks are beginning to gain ground.
The market for tokenized stocks has repeatedly hit record highs as exchanges and financial institutions seek to bring traditional equity onchain. According to RWA.xyz, tokenized equity was valued at around $3.2 billion, up 10.6% over the past 30 days. Information.
CEO Carlos Domingo Securities argued Even modest adoption can have a huge impact on the crypto market. Speaking at ETHConf in July, Domingo said tokenized stocks could help push the overall crypto market to a $5 trillion valuation.
Related: Crypto billions are back, but no premium
