Ripple has partnered with Kyobo Life Insurance, one of South Korea’s largest life insurers, for blockchain-based settlement of government bonds, as Seoul moves to formalize rules for tokenized securities.
Ripple Custody, Ripple’s digital asset custody solution, will support the issuance, storage and settlement of the company’s tokenized government bonds. said In an announcement on Wednesday. Companies will also explore tokenized treasury settlement in the Korean financial system.
The project aims to replace traditional bond settlement processes, which often rely on multiple intermediaries and two-day settlement cycles, with on-chain execution that enables real-time settlement. This change can reduce counterparty risk and improve capital efficiency.
The project comes at a time when South Korea is building a legal infrastructure for tokenized securities. Amendments recognizing blockchain-based distributed ledgers as valid securities registries were approved by the National Assembly on January 15, and the new framework is Schedule After additional rule making and infrastructure work, will come into effect from 4 February 2027.
The reforms also pave the way for circulation of investment treaty securities through regulated securities firms, increasing access and improving market liquidity for non-traditional financial instruments.
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Kyobo Life explores stablecoin payments.
As part of the partnership, Cubo Life said it will also explore other use cases, including stablecoin-based payment rails and integration with liquidity and treasury management systems.
Jin Ho Park, senior executive vice president of Qubo Life, said traditional financial instruments “can operate securely and efficiently on the blockchain.”
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South Korea drafts bill to tighten rules for stablecoin, RWA
As Cointelegraph reported, South Korea’s ruling Democratic Party is reportedly preparing legislation that would classify stablecoins used in cross-border payments as foreign exchange instruments.
Under the proposed Digital Asset Basic Act, such tokens are covered under the Foreign Exchange Transactions Act, which brings the relevant businesses under regulatory oversight even without separate licensing.
The draft also introduces stricter rules for tokenized real-world assets, requiring issuers to back the underlying assets through a trust structure regulated under capital markets law.
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