Blockchain-based bond settlement Ripple teams up with Korean insurance
Ripple has partnered with Kyobo Life Insurance, one of South Korea's largest life insurers, to test blockchain-based government bonds, as Seoul moves to formalize rules for tokenized securities.
Ripple Custody, Ripple's digital asset protection solution, supports the issuance, storage and settlement of tokenized government bonds, the company said in an announcement on Wednesday. The companies will explore tokenized treasury distribution within the Korean financial system.
The project aims to replace traditional bond settlement processes, which often rely on multi-media and two-day settlement cycles, with on-chain execution that enables real-time settlement. This change can reduce collateral risk and improve capital efficiency.
The project comes as South Korea builds a legal infrastructure for tokenized securities. Amendments to recognize blockchain-based distributed ledgers as valid securities records passed the National Assembly on January 15, and the new framework will come into force on February 4, 2027 after further legislative and infrastructure work.
The reform will pave the way for investment contract securities to be issued by regulated securities companies, widening access and improving market flow for non-traditional financial instruments.
Related: South Korea Fines Coinone $3.5M, Orders Partial Business Ban: Reports
Kyobo Life explores stablecoin payments.
As part of the partnership, Kyobo Life said it will explore other use cases, including stablecoin-based payment rails and integration with liquidity and treasury management systems.
Jin Ho Park, Kyobo Life's senior executive vice president, said that traditional financial instruments can “operate securely and efficiently on the blockchain.”
RELATED: Jito, KODA team up on institutional stake in South Korea
South Korean bill to strengthen stablecoin, RWA laws
According to Cointelegraph, South Korea's ruling Democratic Party is said to be drafting legislation that would identify stablecoins as foreign currency instruments used in cross-border payments.
Under the proposed Digital Asset Basic Law, such tokens would fall under the Foreign Exchange Transactions Act, subjecting related businesses to regulatory oversight even without a specific license.
The draft also introduces stricter rules for real-world assets under the Capital Markets Act, requiring issuers to support underlying assets through trust structures regulated under the Capital Markets Act.
Magazine: South Korea gets rich from crypto… North Korea gets weapons.
