#ProjectHangang

5 articles tagged #ProjectHangang — curated RWA tokenization coverage.

#BankOfKorea#CBDC#SouthKorea#TokenizedDeposits#CentralBank#CentralBankDigitalCurrency#FinancialStability#IMF#Tokenization#TokenizedBonds
BOK to Use Wholesale CBDC, Not Stablecoins, in 2027 Tokenized Treasury Bond Pilot
Infrastructure

BOK to Use Wholesale CBDC, Not Stablecoins, in 2027 Tokenized Treasury Bond Pilot

The Bank of Korea (BOK) has announced plans to utilize a wholesale central bank digital currency (wCBDC) as the primary settlement asset for its upcoming tokenized Treasury pilot scheduled for 2027. By opting for a central bank-issued digital currency over private stablecoins, the BOK aims to minimize counterparty settlement risk and guarantee settlement finality for government bond transactions. This initiative seeks to modernize the issuance and distribution of conventional government bonds by leveraging blockchain technology to enable simultaneous ownership transfers and payments. The BOK is currently coordinating with the Ministry of Economy and Finance, the Financial Services Commission, and the Korea Securities Depository to address the necessary legal and technical frameworks. Simultaneously, the central bank is expanding its existing Project Hangang pilot, which will now include nine participating banks and increase the user base to 500,000 participants. The project budget for Project Hangang has seen a significant 61.8% increase to 12.52 billion won, reflecting the bank's commitment to testing deposit tokens for government subsidy payments. While the specific integration between Project Hangang and the Treasury pilot remains undecided, these efforts represent a major institutional push toward integrating blockchain into national financial infrastructure. This development is significant for the RWA market as it signals a preference for sovereign-backed settlement assets in large-scale government bond tokenization projects.

#TokenizedTreasuries#SouthKorea#CBDC
en.bloomingbit.io·Oct 12, 20268.5
Korea to test tokenized government bonds in 2027
Infrastructure

Korea to test tokenized government bonds in 2027

The Bank of Korea (BOK) announced plans to launch a pilot program for tokenizing government bonds in 2025, signaling a significant move toward integrating programmable digital ledgers into national financial infrastructure. This initiative coincides with the expansion of the BOK's Project Hangang digital currency trial, which is set to scale its second phase in the fourth quarter of 2024. During a joint forum with the International Monetary Fund (IMF), officials discussed the dual nature of tokenization, which offers reduced administrative costs and improved transparency while potentially introducing new systemic risks. The IMF's latest Global Financial Stability Report highlights that while current risks remain limited, broader adoption could trigger liquidity strains, leverage issues, and financial contagion. The report notes that the global public market for tokenized real-world assets reached approximately $65 billion as of July. Furthermore, the IMF cautioned that continuous trading and automated liquidations in tokenized markets could exacerbate volatility during periods of stress. These developments underscore the necessity for South Korean authorities to establish robust regulatory safeguards and legal frameworks before scaling tokenized infrastructure to ensure market stability.

#TokenizedBonds#IMF#BankOfKorea
m.ajupress.com·Oct 8, 20268.5
South Korea eyes September launch for second phase of CBDC pilot: Report
Stablecoins

South Korea eyes September launch for second phase of CBDC pilot: Report

The Bank of Korea is preparing to launch the second phase of its Project Hangang wholesale central bank digital currency (CBDC) pilot as early as September. This expansion increases the number of participating financial institutions from seven to nine, with the addition of regional lenders Kyongnam Bank and iM Bank. The pilot utilizes a blockchain-based wholesale CBDC as the primary settlement asset for deposit tokens issued by commercial banks. Building on the first phase, which saw 81,000 participants complete over 114,000 transactions, the new stage focuses on commercialization and practical utility. Key features being tested include government subsidy disbursements, peer-to-peer transfers, and biometric authentication. By integrating merchant partnerships, the project aims to bridge the gap between institutional blockchain infrastructure and everyday consumer payments. This development is significant for the RWA market as it demonstrates a sovereign-led framework for tokenized bank deposits, setting a precedent for how national currencies can be digitized for scalable, real-world financial applications.

#TokenizedDeposits#SouthKorea#CBDC
Cointelegraph — Tokenization·Jul 20, 20268.5
Korea’s unified ledger paper is silent on privacy. Central banks should take note
Infrastructure

Korea’s unified ledger paper is silent on privacy. Central banks should take note

The Bank of Korea has released a detailed paper on Project Hangang, a unified ledger initiative designed to integrate tokenized commercial bank deposits with a wholesale central bank digital currency (wCBDC). While the project aims to maintain the traditional two-tier monetary system, the report notably omits any discussion regarding privacy protections for retail and interbank transactions. This oversight is significant because the platform centralizes retail payments, wholesale settlement, and programmability under a single central bank-operated infrastructure. The initiative has already completed a Phase I trial involving 80,000 users and 12,000 merchants, with Phase II expanding to nine commercial banks later this month. The South Korean government maintains an ambitious goal to utilize this tokenized framework to distribute 25% of National Treasury Funds by 2030. The absence of privacy discourse in such a comprehensive design document raises concerns about data partitioning and the central bank's visibility into private transaction flows. For the broader RWA market, this highlights the ongoing tension between central bank oversight and the necessity of data confidentiality in tokenized financial systems. Addressing these privacy gaps remains essential for ensuring commercial bank participation and public trust in sovereign-backed digital ledgers.

#TokenizedDeposits#BankOfKorea#ProjectHangang
Ledger Insights·Jul 2, 20267.5
BOK’s Shin Says Tokenization Era Is Coming for Bank Deposits, Government Bonds
U.S. Treasuries

BOK’s Shin Says Tokenization Era Is Coming for Bank Deposits, Government Bonds

The Bank of Korea (BOK) is advancing plans to tokenize government bonds and commercial bank deposits on a unified ledger system to modernize financial infrastructure. Governor Hyun Song Shin presented findings from Project Hangang, which successfully demonstrated the stable operation of a unified ledger for central bank money and asset trading. By embedding transaction conditions directly into tokenized assets, the BOK aims to automate bond settlement and collateral management, moving away from current T+1 settlement cycles. This initiative represents a significant shift toward programmable "smart money" that executes transactions only when specific criteria are met. Furthermore, the BOK intends to integrate this system with Project Agora to streamline cross-border securities trading and foreign exchange. By enabling simultaneous ownership transfer and payment, the bank seeks to reduce settlement times and costs for international investors. This development underscores a global trend among central banks to leverage blockchain technology for enhanced monetary policy execution and financial stability.

#Tokenization#BankOfKorea#UnifiedLedger
en.bloomingbit.io·Jul 1, 20268.5

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