Settlement Dynamics & Capital Efficiency
Stage 1: Institutional Private Debt Focus
Atomic Delivery-versus-Payment (DvP) vs Legacy KSD T+2
FSC Target Model
Legacy KSD Clearing (T+2)
48h Exposure
T+0: Trade Match & Bilateral Allocation
T+1: Clearing Member Margin Call & Netting
T+2 09:00: KSD Central Depository Transfer
T+2 16:00: BOK-Wire+ Gross Cash Settlement
Peak Locked Liquidity: 50.0 Billion KRW
Bilateral Credit Risk: Present until T+2 Finality
Bilateral Credit Risk: Present until T+2 Finality
Smart Contract Atomic DvP
Sub-second (T+0)
HTLC / Smart-Contract Conditional Escrow
Simultaneous Asset Token & Stablecoin Swap
Instant Ledger Finality on FSC-Approved DLT
Automated Coupon & Principal Whitelist Sync
Locked Settlement Float: 0 KRW
Principal Default Risk: Eliminated (Atomic)
Principal Default Risk: Eliminated (Atomic)
FSC Regulatory Checklist & Eligibility Audit
Compliant
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Passed
Electronic Securities Act Alignment (전자증권법 개정안)
Distributed ledger registered as a valid electronic registry book with licensed transfer agent monitoring.
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Passed
February 2027 Stage 1 Readiness Scope
Selected asset class qualifies for the initial rollout restricted to institutional and accredited private placements.
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Passed
Wholesale Payment Rail Feasibility
Settlement asset complies with Bank of Korea and FSC pilot standards for tokenized commercial deposits/stablecoins.
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Passed
Investor Protection & Loss Absorption Reserve
Meets mandatory net capital rule (NCR) and cold-storage institutional custody requirements.
Institutional Readiness Assessment: Stage 1 Approved
The proposed 50 Billion KRW private debt issuance meets the Financial Services Commission (FSC) criteria for the February 2027 pilot launch. Adopting atomic DvP eliminates approximately 50 Billion KRW in 2-day capital drag and removes bilateral settlement default risk.