The Bank of Korea is preparing a 2027 pilot for tokenized government bonds and plans to use a wholesale central bank digital currency as the settlement asset instead of private stablecoins. The approach is intended to support delivery-versus-payment on blockchain infrastructure, with ownership transfer and payment occurring at the same time.
According to the reported plan, the central bank wants settlement to take place with digital money issued directly by the BOK in order to reduce counterparty risk and provide settlement finality. The initiative would issue and distribute Treasuries as blockchain-based digital assets while authorities examine what legal and technical changes may be needed before any test can begin.
How the pilot is designed
The proposed structure centers on tokenized Treasuries, meaning government bonds would be represented and distributed in digital form on a blockchain-based system. The stated objective is to improve settlement efficiency by allowing the asset leg and the payment leg of a transaction to move simultaneously.
Rather than relying on privately issued stablecoins, the BOK plans to settle those transactions using a wholesale CBDC. In practice, that would mean the settlement instrument comes directly from the central bank, a choice the BOK sees as a way to lower settlement counterparty exposure and make the finality of payment clearer.
Authorities are reviewing requirements
Preparations are already underway inside the central bank. The BOK has formed an asset tokenization team and is coordinating with the Ministry of Economy and Finance, the Financial Services Commission, and the Korea Securities Depository.
That work is focused on reviewing the legal and technical requirements for the pilot. The source report did not say that final approval has been granted, and the project remains at the planning stage while those reviews continue.
Project Hangang enters a larger second phase
Separately, the second phase of Project Hangang is set to expand from seven banks to nine, adding Kyongnam Bank and iM Bank. Real-world participation is expected to rise to 500,000 people, and the use of deposit tokens is due to broaden to additional settings including convenience stores.
The next phase also includes a 30 billion won subsidy for EV charging infrastructure to be delivered in deposit tokens. At the same time, the budget for Project Hangang increased 61.8% to 12.52 billion won, with plans to begin follow-up real-world transactions and continue the pilot during the innovative financial services designation period.
What remains undecided
One key point is still unresolved: the relationship between Project Hangang and the tokenized Treasury initiative has not been determined. While both efforts involve digital money and tokenized financial infrastructure, the source report said no decision has yet been made on how, or whether, the two programs will connect.
For now, the next confirmed step is continued preparation by the BOK and partner agencies. Their legal and technical review will shape whether the 2027 tokenized Treasury pilot moves forward in its current form and how wholesale CBDC settlement would be implemented.
Source: en.bloomingbit.io