Meritz Securities has signed a strategic partnership with Ripple to explore how institutional digital asset custody and tokenization technology could be used in South Korea’s financial markets.
The agreement will focus on reviewing Ripple Custody and its tokenization infrastructure for possible use in Korea under existing securities and digital asset rules.
The two companies signed the agreement on Oct. 1 at Meritz Securities’ headquarters in Yeouido, Seoul. The deal was announced publicly on Oct. 7.
Meritz is currently exploring several digital asset businesses, including spot crypto ETFs, fractional investment products, tokenized securities, digital asset trading platforms and won-denominated stablecoins.
For now, the partnership will remain within activities allowed under South Korea’s current regulations. The companies could expand their cooperation as the country introduces new rules for digital assets.
Ripple Custody is designed to help financial institutions securely store and manage digital assets. Ripple has also been combining its custody technology with tokenization infrastructure that allows institutions to issue, manage and settle tokenized assets.
Ripple has already worked with financial institutions in Asia on similar projects. In September, the company partnered with SettleMint to combine Ripple Custody with technology for issuing and managing tokenized assets.
Ripple has also worked with South Korea’s Kyobo Life Insurance on a project involving tokenized government bonds. The companies have been exploring how blockchain could be used to hold, transfer and settle tokenized Korean government bonds more efficiently.
The Kyobo project also considered the use of Ripple’s RLUSD stablecoin as a payment rail. However, Ripple Custody was the main infrastructure involved, meaning XRP did not need to be used as the settlement asset.
Other Korean financial companies are also moving into tokenization. KB Securities has partnered with Securitize and the Optimism Foundation to develop tokenized funds for institutional investors, while Shinhan Asset Management and Plume have tested a won-denominated tokenized fund backed by an ultra-short-term bond fund.
South Korea’s security token amendments are scheduled to take effect on Feb. 4, 2027. The new framework is expected to give financial companies clearer rules for issuing and managing tokenized securities.
Meritz is preparing for these changes by studying a wider range of digital asset services.
The company said it is considering spot digital asset ETFs, fractional investments, security token offerings, trading platforms and won-denominated stablecoins. However, Meritz has not announced a specific product or launch date under its Ripple partnership.
Won-based stablecoins are also becoming an important area of interest for South Korean financial institutions as regulators work on rules for digital currencies linked to the Korean won.
Ripple already has a presence in South Korea through RLUSD. Upbit began supporting RLUSD trading against the Korean won, Bitcoin and USDT in July, with deposits and withdrawals available through the XRP Ledger.
However, Meritz has not said whether XRP, RLUSD or the XRP Ledger will be used in any future services developed through the new partnership.
For now, the agreement is mainly focused on research and preparation. Meritz plans to work within existing regulations while monitoring South Korea’s developing digital asset rules.
The partnership gives Meritz access to Ripple’s institutional blockchain infrastructure while allowing Ripple to work with a major Korean securities firm as the country prepares to bring tokenized assets and other digital financial products further into its regulated capital markets.
