South Korea to Legalize RWAs and Stablecoins Under Existing Laws

• South Korea proposes regulating RWAs and stablecoins under the Digital Asset Basic Act.
• The proposal builds on existing Capital Markets Act reforms requiring real asset backing for regulated trusts.
• This move could boost growth in South Korea’s tokenized market and drive payment innovation and adoption.

On April 8, 2026, South Korean regulators proposed legalizing tokenized real-world assets and stablecoins by leveraging existing capital markets and payment laws. The plan requires full real asset backing through regulated trusts and expands stablecoin use for everyday transactions, aiming to bridge delays in the broader Digital Asset Basic Act.

South Korea Proposes RWA and Stablecoins Regulation

On April 8, 2026, South Korea’s ruling Democratic Party proposed integrating tokenized real-world assets (RWAs) and stablecoins into the country’s existing financial regulatory framework, rather than creating entirely new legislation for these assets.

The proposal stems from the ongoing work by the Democratic Party’s Digital Asset Task Force, informed by recent policy seminars, including one hosted by lawmaker Min Byung-duk on stablecoin and RWA system design. It seeks to balance innovation with financial stability by integrating tokenized RWAs into South Korea’s established capital markets regime.

Capital Markets Act Requires Real Asset Backing

Under the proposal, the linked real assets, such as real estate, art, intellectual property, or other non-standard investment contract securities, must be placed into a managed trust governed by the Capital Markets Act. Additional detailed rules on trust management, oversight, and operational standards are expected to be specified through a presidential decree. This structure ensures:

• Proper segregation and custody of the underlying assets.
• Enhanced investor protection through regulated trust mechanisms.
• Transparent backing for tokenized representations of those assets.

This proposal leverages the existing regulatory framework instead of creating new legislation for RWAs. It builds on the January 2026 amendments to the Capital Markets Act and the Electronic Securities Act. These changes established the legal foundation for security token offerings, including tokenized securities, and are set to take effect in 2027.

For stablecoins and RWAs, the proposal classifies them as a means of payment under foreign exchange rules, simplifying issuance, reserve management, and redemption under existing laws. Licensed issuers must hold high-quality reserves and enable seamless transfers. 

Lawmakers from the Democratic Party have described won-denominated stablecoins as a “national strategic priority,” emphasizing their potential to enhance competitiveness in digital payments.

What’s Next For Tokenized Assets and Stablecoin Markets

If the second-phase Digital Asset Basic Act gains momentum after the June local elections, South Korea could see clearer rules for both RWAs and stablecoins by late 2026 or early 2027, aligning tokenized assets more closely with traditional finance safeguards while fostering innovation.

On the contrary, delays could risk South Korea falling behind faster-moving jurisdictions in Asia and globally. Industry participants continue to urge acceleration, warning that a prolonged legislative vacuum could hinder competitiveness in the rapidly expanding global RWA and stablecoin markets.

Analysts are projecting that the global tokenized RWA market, excluding stablecoins, will reach $2-4 trillion by 2030. South Korea’s compliance-first model could help the country capture a substantial share of Asia-Pacific growth, particularly in real estate and fixed-income tokenization.

Therefore, this phased approach, which leverages existing laws where possible, reflects South Korea’s cautious yet strategic balance between innovation, investor protection, and financial stability.

Related: Crypto Crackdown: South Korea Announces Market Manipulation Investigation