BOK, BoE discuss tokenization cooperation
RWA Signal Insight
InfrastructureThe Bank of Korea (BOK) and the Bank of England (BoE) recently held high-level discussions in Seoul to align their strategies regarding tokenized finance and digital payment innovation. Deputy Governor Sarah Breeden of the BoE met with BOK officials to review progress on key initiatives, including the BOK's Project Hangang and the collaborative Project Agorá. Project Hangang focuses on a domestic unified ledger system that integrates tokenized commercial bank deposits with wholesale central bank digital currency. Simultaneously, Project Agorá, led by the Bank for International Settlements, explores cross-border settlement using tokenized deposits and reserves on an atomic basis. These discussions highlight a growing global trend among central banks to modernize financial infrastructure through programmable digital assets. By exploring how tokenized deposits and regulated stablecoins can coexist with traditional money, these institutions aim to enhance settlement efficiency and cross-border interoperability. While no new joint projects were announced, the meeting underscores the commitment of both central banks to shaping the future of global digital finance standards.
Key points
- BOK and BoE officials reviewed Project Hangang and Project Agorá for digital payment innovation.
- Project Hangang tests tokenized commercial bank deposits on a unified central bank ledger.
- Project Agorá enables atomic cross-border settlement involving over 40 private financial institutions.
- Central banks are evaluating the coexistence of tokenized deposits, stablecoins, and digital currencies.
Background
Project Agorá is a collaborative initiative led by the Bank for International Settlements (BIS) that brings together central banks and private financial institutions to improve the speed and integrity of cross-border payments. It utilizes a unified ledger approach to test how tokenized commercial bank deposits and central bank reserves can be integrated to facilitate seamless, multi-currency transactions.