Seoul City Launches Public Asset Tokenization Initiative via STO to Enable Citizen Participation

Gate News message, April 21 — Seoul City has announced plans to implement security token offerings (STOs) for public assets, allowing citizens to participate in public projects with small investments and share in the returns. The city posted a procurement notice on April 2 for a 10-month consulting project valued at approximately $2.97 million to develop and operationalize Seoul's community REIT and STO framework.

According to Seoul City, the initiative aims to leverage blockchain technology to tokenize asset rights and explore new funding mechanisms for public projects. The city explained that traditional financing methods—limited to government budgets and private investment—have become insufficient as project scope and diversity have expanded. Through STOs and community REITs, residents can invest small amounts in public infrastructure and share in resulting profits, unlocking new asset utilization strategies and revenue models.

The consulting project will analyze STO concepts, structures, and comparable existing systems; propose operational frameworks and asset liquidity mechanisms; and identify suitable public properties for tokenization. Seoul City will also develop guidelines for selecting appropriate assets, propose project structures, identify pilot program candidates, and recommend necessary legal and regulatory amendments. Additionally, the project will support a community REIT pilot program, including case studies and establishment procedures.

Seoul City previously announced in September 2025 plans to launch a real estate STO pilot program, targeting one or two unused or underutilized public facilities—such as closed police boxes—for fractional investment trials. Meanwhile, Gyeonggi Province launched its own blockchain initiative on April 3, commissioning research into stablecoin adoption that includes local currency integration.