Bank of Korea launches 24
RWA Signal Insight
InfrastructureThe Bank of Korea has launched a pilot program for a 24-hour won settlement network designed to facilitate international transactions outside of South Korea's standard banking hours. By partnering with four major domestic lenders—KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank—the central bank aims to streamline access for foreign investors through Registered Foreign Institutions for KRW Business. This infrastructure allows investors to settle won transactions during their local business hours without requiring direct accounts at South Korean financial institutions. Full operational status is targeted for January 2027, with plans to expand participation to additional domestic and foreign banks. This initiative is part of a broader strategy to enhance the international standing of the South Korean won. Furthermore, the Bank of Korea is actively exploring tokenized settlement through the Bank for International Settlements' Project Agorá and its own Project Hangang. These efforts utilize wholesale central bank digital currency and tokenized commercial bank deposits to modernize cross-border payment systems. The development represents a significant shift toward blockchain-integrated financial infrastructure for sovereign currency settlement.
Key points
- Bank of Korea launched a 24-hour won settlement pilot with four major domestic banks.
- Full network operations are scheduled to commence in January 2027.
- Project Agorá and Project Hangang are testing tokenized CBDC and commercial bank deposits.
- New infrastructure enables foreign investors to settle won without direct South Korean accounts.
Background
The Bank of Korea is the central bank of South Korea, responsible for monetary policy and financial stability. It has recently pivoted toward exploring distributed ledger technology and wholesale CBDCs to modernize the nation's payment infrastructure and improve the global liquidity of the Korean won.