South Korea opens path for offshore tokenized securities tied to domestic MMFs

Tokenized securities backed by domestic underlying assets such as money market funds, or MMFs, can now be issued and distributed in overseas blockchain markets, The Korea Economic Daily TV reported. The move follows an interpretation from South Korea’s Financial Services Commission that issuing and selling tokenized securities, or STOs, overseas based on domestic underlying assets is unlikely to be viewed as a violation of the current Electronic Securities Act. The report said the products must be sold only through private placements to overseas investors, while purchases and resales by South Korean residents must be blocked through technical and contractual measures.