South Korea has laid out a three-stage plan to bring stocks, bonds and funds onto tokenized infrastructure, with the final phase set to connect securities settlement to stablecoin-based onchain payments.

The Financial Services Commission said Friday that the roadmap will begin when amendments to the Electronic Registration Act take effect on Feb. 4, 2027, expanding tokenization beyond fractional investment products and creating a legal route for conventional securities to be issued and managed through distributed ledgers.

FSC Vice Chairman Kwon Dae-young unveiled the policy at the third meeting of a public-private consultative group attended by the Financial Supervisory Service, financial institutions, industry groups and private-sector experts.

Authorities plan to build the system in stages, starting with a limited group of securities and institutional products before opening tokenization to publicly offered securities and eventually connecting the market to stablecoin settlement.

“Authorities will seek to lay foundations to facilitate the tokenized issuance and circulation of more traditional types of securities, including stocks, bonds, and funds,” Kwon said, describing a longer-term plan to upgrade capital market infrastructure for digital connectivity.

South Korea tokenization plan starts in February 2027

During the first phase, privately pooled money market funds and bonds reserved for institutional investors will become eligible for tokenization. Unlisted stocks issued through trust structures and publicly offered fractional investment securities will fall within the initial framework as well.

The rollout builds on amendments passed by South Korea’s National Assembly in January that recognize distributed ledgers as securities registries while keeping tokenized instruments within the country’s existing securities laws. Crypto.news previously reported that the tokenized securities rules were scheduled to take effect in February 2027 as regulators worked on standards covering issuance, trading and settlement.

Technical infrastructure is being prepared alongside the legal framework. Samsung SDS won a contract earlier this year to develop a token securities platform for the Korea Securities Depository, with completion expected around the time the amended laws take effect.

The system is expected to connect the KSD’s existing electronic securities account infrastructure with blockchain records, covering issuance, circulation checks, rights management and monitoring.

South Korea’s second phase would open tokenization to all publicly offered securities. Regulators have not fixed a start date because implementation will depend on results from the first stage and the pace at which financial companies adopt the required technology.

Stablecoins form the final settlement layer

The third phase would introduce onchain payment infrastructure linked to stablecoins, bringing the cash side of securities transactions onto digital rails.

Its timing remains dependent on pending stablecoin legislation as well as the results of the earlier tokenization stages. South Korean lawmakers have been working separately on a Digital Asset Framework Act expected to cover stablecoin issuance and other parts of the digital asset market.

In August, the FSC said it would accelerate consultations on the legislation as lawmakers sought to complete the framework during the fall session. Stablecoin rules have remained one of the main unresolved parts of South Korea’s digital asset regulatory program.

Tokenized settlement is already being tested outside the planned securities framework. A separate South Korean program has expanded deposit-token trials to nine banks, while the Bank of Korea has studied the use of tokenized bank deposits as settlement money for tokenized bonds and shares.

Private financial institutions are running their own trials ahead of the 2027 legal rollout. Shinhan Asset Management recently signed an agreement to test a tokenized fund denominated in Korean won using Solana, covering investor verification, issuance, distribution and onchain liquidity in a proof of concept.

Retail limits will apply to tokenized securities

The FSC’s roadmap sets investment limits and operating requirements as regulators prepare to bring more securities onto distributed ledgers.

For non-monetary trust beneficiary certificates, the maximum individual subscription would be the lower of 30 million won, roughly $22,000, or 5% of the total issuance volume. Regulators want publicly offered allocations to include a portion reserved for retail investors, with a minimum amount distributed equally.

Retail investors using over-the-counter exchanges will face an annual net purchase ceiling of 100 million won, or roughly $74,000, on each OTC platform.

Existing financial investment companies will not need a separate authorization solely because they handle tokenized securities. Firms already licensed for the relevant financial activity can operate within their existing permitted business areas, although intermediaries handling tokenized securities on OTC markets will need prior consultation with the Financial Supervisory Service.

Authorities plan to introduce another OTC licensing category for debt securities alongside existing categories covering unlisted stocks and non-monetary trust beneficiary certificates. The FSC expects debt-security transactions to become more common as tokenization develops.

Issuers will have another route through the new “issuer account management entity” structure. Companies approved under the system can manage securities accounts themselves instead of relying exclusively on financial institutions.

Applicants must maintain at least 4 billion won, or close to $3 million, in equity capital. Staffing requirements include personnel responsible for account management and internal controls, along with two employees assigned to computer and IT systems. Issuers must meet specified cybersecurity and technology standards.

The Korea Securities Depository has prepared screening criteria for distributed ledgers used by securities firms. Tests will cover core issuance and circulation functions as well as contingency procedures for system failures and other disruptions.

Asian markets are testing blockchain settlement

South Korea’s plan is developing alongside blockchain settlement projects elsewhere in Asia.

Japan is studying a system that could eventually process publicly traded stocks and Japanese government bonds on blockchain infrastructure around the clock. The Financial Services Agency, Ministry of Finance, Bank of Japan and financial institutions are expected to participate, with an initial development plan targeted for early 2027 and possible operations during the 2030s.

Japanese institutions have already begun testing parts of that model. Four Mitsubishi UFJ Financial Group companies launched a proof of concept in August to test JGB repo settlement on Canton Network, examining automated processing and 24-hour settlement. Tokenized deposits or stablecoins are being considered for the payment side of those transactions.

Asia accounted for 30% of global stablecoin trading activity in 2025 and recorded the highest regional growth rate in crypto activity, according to an OECD report cited in the source material.

South Korea itself had 11.3 million verified crypto users, according to FSC data, giving regulators a sizable domestic digital asset market as the securities framework moves toward implementation.

The FSC plans to publish proposed revisions to subordinate regulations under the Financial Investment Services and Capital Markets Act and Electronic Registration Act by the end of September. Securities companies and the Korea Securities Depository will work on the required infrastructure before the first phase begins in February 2027.

U.S. spot Bitcoin ETFs have recorded $730.9 million in net inflows in their strongest single trading session since mid-January, led by more than $450 million entering BlackRock’s iShares Bitcoin Trust.

According to SoSoValue data for Sept. 3, the group posted its largest daily inflow since Jan. 14, when the funds attracted $843.6 million, pushing cumulative net inflows since their January 2024 launch to $55.44 billion.

Bitcoin ETF inflows reach $731 million

BlackRock’s IBIT accounted for $454 million of Thursday’s inflows, representing more than 60% of the total. The latest allocation brought the fund’s cumulative net inflows to $63.94 billion.

ARK Invest and 21Shares’ ARKB ranked second with $138 million, while Fidelity’s FBTC received roughly $74 million. Grayscale’s two Bitcoin products drew a combined $57 million during the session.

VanEck’s HODL and WisdomTree’s BTCW were the only products to record withdrawals. HODL lost close to $20 million, while approximately $5 million left BTCW.

The inflows arrived as Bitcoin rebounded sharply, with the U.S.-listed funds gaining between 5.7% and 5.9% during Thursday’s trading session. Their combined net assets climbed to $103.34 billion, equivalent to 6.32% of Bitcoin’s market capitalization.

Thursday’s result was more than three times the size of any single daily inflow recorded during an 11-session run of positive flows in late August.

The latest buying followed an active August for the products. U.S. Bitcoin ETFs collected $1.92 billion during the five trading sessions ending Aug. 21, when Bitcoin and Ether ETFs together attracted $2.61 billion in their strongest combined week since October 2025.

Bitcoin funds accounted for roughly 73% of those flows, while spot Ether ETFs received $697.47 million during the same five-day period.

BlackRock’s IBIT remains the main source of ETF demand

IBIT has repeatedly accounted for a large share of the money entering U.S. spot Bitcoin ETFs during recent periods of buying.

Crypto.news previously reported that the funds attracted $853.5 million over five days from Aug. 3 through Aug. 7. BlackRock’s fund brought in an estimated $693 million during the run, equivalent to roughly 81% of the group’s total inflows.

The pattern continued later in August. QCP Capital said Bitcoin’s advance from approximately $63,500 to above $80,000 was supported by spot buying while futures positioning declined. During part of the rally, spot Bitcoin ETFs drew $2.8 billion across eight consecutive sessions.

Futures open interest fell from 646,000 BTC to 588,000 BTC as Bitcoin advanced, according to QCP, separating the price move from rallies driven primarily by an increase in leveraged positions.

IBIT has remained the largest U.S. spot Bitcoin ETF by assets through the changes in daily flows. BlackRock had reported $60.52 billion in net assets for the fund as of Aug. 26, before Bitcoin’s latest advance and Thursday’s increase in ETF asset values.

Institutional filings have shown large positions in the fund as well. Jane Street reported more than $1 billion in U.S. spot Bitcoin ETF shares as of June 30, including approximately $828 million in IBIT. The quarterly filing represented positions at the end of June and did not disclose the trading firm’s current exposure.

ETF flows have remained volatile between large buying sessions

Large inflows have not produced a continuous run of buying across every trading day.

The U.S. products recorded $201.9 million in net outflows on Aug. 28, ending nine consecutive sessions of inflows. ARK 21Shares’ ARKB led the withdrawals with $114.9 million, while IBIT lost $33.4 million.

Despite the final negative session, the funds still attracted a combined $924.5 million during the Aug. 24 to Aug. 28 trading week.

Flows reversed again as September began. Investors withdrew $236 million from the funds on Sept. 1, with IBIT accounting for roughly $201 million of the redemptions.

SoSoValue data showed the group returned to net buying the following session, taking in approximately $101 million on Sept. 2. IBIT received roughly $115 million, offsetting withdrawals elsewhere in the group before Thursday’s much larger allocation.

The $454 million that entered IBIT on Sept. 3 therefore came two sessions after the fund recorded a $201 million withdrawal, putting BlackRock’s product on both sides of the largest daily moves during the opening days of September.

The recent swings follow a period when Bitcoin ETF demand had already recovered from sustained withdrawals earlier in the year. The products entered July after eight consecutive negative weeks, including $527 million in withdrawals during the four trading days ending July 2.

A $221.7 million inflow on July 2 ended a 10-day daily withdrawal run, while BlackRock returned to larger allocations days later. IBIT received $209.4 million on July 7 as total daily inflows across the U.S. Bitcoin ETFs reached $265.7 million.

By July 30, another $233.1 million entered the products, with BlackRock taking $183.4 million. The fund accounted for 78.7% of that session’s inflows.

Thursday’s $730.9 million allocation has now exceeded each of those daily totals, while the combined net asset value of the U.S. spot Bitcoin ETF market has moved above $103 billion.

Today, 4 September, the market’s main focus is the August US employment report. According to CNBC, the consensus forecast calls for just 53,000 nonfarm jobs to be added following July’s decline, highlighting the continued weakness of the labour market. At the same time, the Federal Reserve’s focus is shifting towards inflation risks. In the eurozone, a Reuters poll showed that all 65 economists surveyed expect the ECB to raise its deposit rate by 25 basis points to 2.50% at its 10 September meeting, while around 91% expect the rate to remain at that level through the end of the year.

Technical Analysis of EUR/USD

On 21 August, a peak formed around 1.1700 on the four-hour chart, from which a trend and a descending trendline developed. The price repeatedly rejected this trendline to the downside, eventually reaching a low of 1.1570 on 2 September. The following day, the trendline was broken to the upside on increased volume, and the price is now attempting to establish itself above it, as well as above the upper boundary of the current market profile at 1.1610.

A red resistance area is located around 1.1660 above the established market density. In the event of a false breakout followed by a further decline, the asset could trade within the market density or continue lower. However, for this to happen, the price would need not only to test the upper boundary but also break through the Point of Control (POC) at 1.1600 and the lower boundary of the profile at 1.1580. Just below the lower boundary of the profile, there is also a green support area around 1.1570.

The RSI + MAs indicator is showing readings of 58, 45 and 45. The oscillator has moved above the neutral zone, while both moving averages remain red and close to its lower boundary, so they are not yet confirming the breakout.

Key Takeaways

The divergence between the RSI and its moving averages leaves the sustainability of the recovery uncertain, and the market may need more time for the other components of the breakout to develop. The August US employment report could provide an additional catalyst for the pair over the coming hours, with its significance for the Fed’s September decision having increased further against the backdrop of an expected ECB rate hike.

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El Salvador’s Bitcoin reserve increases after the IMF began reviewing its financing program do not involve new purchases funded by public resources, according to the International Monetary Fund. In documents shared with the lender, Salvadoran authorities attributed the growth to private donations after the IMF’s first review of the program concluded in June 2025.

In a Thursday statement, the IMF said it verified the explanation through materials provided by local authorities, concluding that the additions therefore should not be treated as additional government-funded Bitcoin buying within the terms of the program. The IMF also said control of the Chivo wallet—El Salvador’s state-linked Bitcoin wallet—has been shifted to a private operator, while the government retains a minority stake and certain custodial responsibilities.

Key takeaways

• The IMF says post–June 2025 Bitcoin reserve increases were supported by documents showing they came from private donations, not government financing.
• The lender expects no further Bitcoin accumulation beyond the donation activity it says is documented.
• IMF said majority ownership and operational control of the Chivo wallet moved to a private operator, with the state keeping minority and custody roles.
• El Salvador’s public announcements about ongoing accumulation have previously renewed scrutiny over compliance with IMF conditions.

IMF verification after the June 2025 review

The IMF’s latest explanation is aimed at clarifying the source of Bitcoin increases during the period following its first review of El Salvador’s IMF-supported financing arrangement. In its statement, the IMF said the documents submitted by Salvadoran authorities verified that the accumulation did not rely on “public resources.”

The distinction matters because El Salvador’s IMF deal includes restrictions on how the public sector can engage with Bitcoin. When Bitcoin-related activity appears to expand after key compliance checkpoints, investors and stakeholders typically look for whether the activity aligns with the program’s conditions—particularly around public funding and state-led accumulation.

The IMF also framed expectations going forward: it said it does not anticipate additional accumulation beyond what can be tied to documented donations. That message effectively sets a compliance ceiling for future reserve growth, at least as the IMF continues to monitor the arrangement.

Chivo wallet control reshuffle

Beyond the donation-source question, the IMF’s statement addressed governance of the Chivo wallet. According to the lender, majority ownership and operational control have been transferred to a private operator. At the same time, the government retains a minority stake and custodial responsibilities.

This matters because earlier IMF commitments emphasized reducing the government’s role in Bitcoin-related activity. A shift in operational control can be seen as consistent with a broader effort to move away from state-driven Bitcoin operations—though the exact implications for users and custody arrangements depend on how the private operator manages day-to-day functions.

How previous rules set the stage for scrutiny

El Salvador’s IMF controversy around Bitcoin centers on the line between government involvement and private-sector activity. In December 2024, the IMF agreement required changes that included limiting public-sector involvement in Bitcoin under the IMF package. The arrangement also made private-sector Bitcoin acceptance voluntary and required that taxes be paid in US dollars, while calling for government involvement in Chivo to be unwound.

Then, in March 2025, the IMF issued new documents that barred “voluntary accumulation” of Bitcoin by the public sector. President Nayib Bukele responded publicly, saying purchases were “not stopping” and that El Salvador would continue adding at least one BTC daily.

The tension between El Salvador’s statements about ongoing accumulation and the IMF’s restrictions has repeatedly reemerged in subsequent months. After the March 2025 update, the country’s Bitcoin Office often posted that El Salvador continued to accumulate Bitcoin, which prompted renewed questions about whether the additions were consistent with the program’s constraints.

From a private-donation explanation to a reserve tracker snapshot

The IMF previously addressed the issue after El Salvador’s December 2024 commitments. In July 2025, the IMF offered an initial explanation, stating that it had found no new Bitcoin purchased since the December agreement. At that time, it attributed increases to consolidation among government wallets.

However, El Salvador’s November 2025 announcement that it had acquired 1,090 BTC worth $100 million—after the first review timeline—brought the question back to the forefront. Coverage at the time highlighted compliance concerns tied to the $1.4 billion IMF program, and an IMF representative reportedly indicated the lender would not provide “running commentary” on announcements, assessing compliance in due course.

Now, the IMF says those due diligence efforts produced a clearer result: it verified that accumulation after the June 2025 review came from private donations rather than additional Bitcoin purchases financed with government resources.

For readers tracking the scale of El Salvador’s holdings, the National Bitcoin Office’s reserve tracker reports that El Salvador holds about 7,764 BTC. Using CoinGecko’s cited BTC price of $80,900, the stockpile is valued at roughly $628 million. The IMF’s framing suggests that the higher balance relative to earlier points should be interpreted, at least for IMF monitoring purposes, as donation-linked additions rather than new public-sector purchases.

What to watch next for investors and market participants

While the IMF’s latest statement provides a compliance-oriented explanation and sets expectations for future accumulation, uncertainty remains around how independently verifiable the donation documentation is over time and whether future reserve changes match the “documented donations only” boundary the IMF described. Market participants should continue to monitor subsequent IMF reviews, alongside updates from El Salvador’s Bitcoin Office and any further disclosures tied to the Chivo wallet’s private operator arrangements.