Hanwha deploys tokenized securities on Avalanche

Hanwha’s move matters because it puts a large South Korean brokerage into production-ready tokenized-securities infrastructure before the country’s new legal framework takes effect. A Sept. 6 report by Seoul Economic Daily said Hanwha Investment & Securities had completed a token-securities platform built on Avalanche, with blockchain firm FairSquare Lab developing the system. The platform was designed to run on multiple networks, including Avalanche and Hyperledger Besu, according to the report. South Korea’s amendments recognizing distributed ledgers as securities registers are due to take effect on Feb. 4, 2027, The Block reported, citing the local report. ### So what exactly did Hanwha build? Seoul Economic Daily reported on Sept. 6 that Hanwha Investment & Securities had built a token-securities platform based on Avalanche. The paper said Hanwha began work last year and has now completed the platform. FairSquare Lab was identified by Seoul Economic Daily as the developer. The same report said the system was designed to operate across more than one blockchain network, specifically Avalanche and Hyperledger Besu. (en.sedaily.com) ### Why is Avalanche part of the setup? Avalanche was included because Hanwha’s platform was built to support a public-blockchain ecosystem that can also be configured as a restricted network for financial institutions, Seoul Economic Daily said. (en.sedaily.com) The report said Avalanche allows separate independent networks with controlled participants and validators, which it described as usable for dedicated institutional networks. Avalanche’s own institutional materials describe the network as infrastructure for regulated financial assets and real-time transfers. Avalanche says institutions use its tooling for tokenized funds, capital-markets infrastructure and real-world assets, while its builder documentation lists tokenization features including issuance, investor management, compliance controls and secondary-trading support. (en.sedaily.com) ### What does “tokenized securities” mean here? Seoul Economic Daily said token securities are stocks, bonds and other instruments defined under South Korea’s Capital Markets Act that are digitized by being recorded on a blockchain or distributed ledger. The report said multiple institutions participate in the same network and jointly manage rights information tied to issuance and transfer. (avax.network) Avalanche ecosystem documentation describes similar building blocks for tokenized assets. Balcony, an Avalanche-integrated tokenization platform, says it supports issuance, investor management, compliance and secondary trading for tokenized securities and fund shares. Securitize, another Avalanche-integrated platform, says it handles token creation, investor onboarding, transfer-agent services, fund administration and secondary trading through a regulated alternative trading system. (en.sedaily.com) ### Is this only a Hanwha project, or is Korean market infrastructure moving too? The Korea Securities Depository is also building token-securities infrastructure that can link with Avalanche, Seoul Economic Daily reported. The paper said the depository’s published guidelines contemplate connections with Hyperledger Besu, Hyperledger Fabric and Avalanche. (docs.avax.network) Participation in that distributed-ledger framework is limited to electronic registration institutions and account-management institutions such as the depository and brokerages, according to the same report. Seoul Economic Daily said the depository will participate directly in each ledger to manage issuance totals and electronic registration data. (en.sedaily.com) ### Why is the timing important? Feb. 4, 2027 is the date when South Korea’s amendments are due to take effect, The Block reported. That change will legally recognize distributed ledgers as securities registers and fold security tokens into the existing capital-markets system, according to the report. The next milestone is that regulatory start date. (en.sedaily.com) Hanwha’s completed platform, FairSquare Lab’s buildout and the Korea Securities Depository’s multi-chain connectivity work are all positioned ahead of that Feb. 4, 2027 implementation date, according to Seoul Economic Daily and The Block. (theblock.co)