Shares of tokenization platform Securitize rallied 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.
Securitize (SECZ) rose nearly 8% in early Tuesday trading to around $12.60, outperforming most major crypto-linked stocks, before pulling back later in the morning. The company began trading on the New York Stock Exchange in July after completing its merger with special purpose acquisition company 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, while also identifying opportunities across the broader Asia-Pacific market.
The agreement comes as South Korea prepares to implement a new framework for tokenized securities. Last week, the country’s Financial Services Commission proposed rules governing the issuance and circulation of tokenized stocks, bonds, funds and other securities, with the framework set to take effect in February 2027.
The partnership potentially gives Securitize an early foothold in South Korea as financial institutions prepare for the new regime. LG CNS also launched a blockchain infrastructure platform on Tuesday designed to help banks and other financial companies support stablecoins and tokenized securities.
Related: Securitize, Cantor target tokenized IPOs for public markets
Stocks emerge as the next major tokenization market
Securitize has become a major player in the tokenized real-world asset market, which has grown to roughly $40 billion. Much of the early growth centered on US Treasurys, private credit 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 explore bringing traditional equities onchain. Tokenized equities were valued at roughly $3.2 billion, up 10.6% over the past 30 days, according to RWA.xyz data.
Securitize CEO Carlos Domingo has argued that even modest adoption could have a much larger impact on crypto markets. Speaking at ETHConf in July, Domingo said tokenized stocks could help push the overall crypto market to a $5 trillion valuation.
Related: Crypto’s billions are back, but the premiums aren’t
