South Korea plans 2027 pilot linking tokenized government bonds to institutional CBDC
South Korea plans a 2027 pilot to link tokenized government bonds with its institutional central bank digital currency (CBDC). Unveiled in its 2026 economic strategy, the project will test if the wholesale CBDC can support capital markets. The initiative, an extension of Project Hangang, will coincide with new regulations for a token securities market taking effect in February 2027.
2027 tokenized bond pilot
▪Specifics on the pilot's size, participants, included bonds, and blockchain technologies have not been provided.
▪The plan was unveiled as part of the government's "2026 Economic Growth Strategy for the Second Half."
▪The pilot will test whether South Korea’s wholesale CBDC can support capital markets infrastructure, not just serve as a digital payment instrument.
▪South Korea plans to conduct a pilot program in 2027 to link tokenized government bonds with its institutional central bank digital currency (CBDC).
CBDC infrastructure interoperability
▪The Bank of Korea noted its existing payment system and Project Hangang’s digital ledger do not yet communicate in real time.
▪This could enable a connection between external distributed ledgers and the Bank of Korea's permissioned system.
▪South Korean authorities will study how to make the Bank of Korea's (BOK) CBDC infrastructure interoperable with other blockchains.
Project Hangang background
▪The tokenized bond initiative is an extension of the Bank of Korea-led Project Hangang.
▪The proposal involves bringing tokenized bonds, wholesale CBDC, and tokenized commercial bank deposits onto a unified ledger.
▪BOK Governor Hyun Song Shin first publicly outlined the idea on July 1 at an ECB Forum, describing government bonds as the "big prize" for tokenization.
Blockchain economy strategy
▪The bond pilot is part of a broader government strategy to promote a "blockchain economy."
▪The government's strategy also calls for broader legislation covering digital asset businesses and stablecoins.
▪The Bank of Korea has identified potential risks, including faster stress transmission and vulnerabilities related to smart contracts, liquidity, and data oracles.
Token securities market rollout
▪These changes will permit the regulated issuance and circulation of tokenized securities, including stocks, bonds, and money-market products.
▪The 2027 bond pilot is expected to coincide with the launch of South Korea’s regulated token securities market.
▪Legal amendments recognizing distributed ledgers as valid securities registries are scheduled to take effect in February 2027.
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