- Bank of Korea is considering tokenized government bonds after Project Hangang’s successful first phase.
- The unified ledger enabled instant payment and asset settlement with programmable compliance features.
- Phase two starts in late 2026, expanding pilots while supporting cross-border payment innovation.
The Bank of Korea (BOK) is considering expanding asset tokenization beyond deposits and central bank money to include government bonds. The move follows the successful completion of the first phase of its digital currency initiative, Project Hangang.
Speaking at the European Central Bank’s Sintra Forum in Portugal, Bank of Korea Governor Shin Hyun-song said tokenizing financial assets could strengthen monetary policy, improve financial stability, and make cross-border payments more efficient.
Project Hangang Validates Unified Ledger Model
Governor Shin presented a paper titled “The Real Implementation of a Unified Ledger: Lessons from Project Hangang”. He highlighted the progress made through the Bank of Korea’s digital currency pilot.
Project Hangang launched in October 2023 to test infrastructure for future digital currencies. During the first phase, the central bank worked with private banks to issue institutional digital currency alongside tokenized bank deposits. The pilot used the unified ledger model proposed by the Bank for International Settlements (BIS).
According to Shin, the pilot showed that the unified ledger can operate reliably in a real-world environment.
He described the unified ledger as a blueprint for a future financial system in which central bank money, bank deposits, and tokenized assets operate on a single programmable platform. Under this model, payments and asset settlements happen at the same time. Ownership of an asset transfers instantly upon completion of payment.
Deposit Tokens Proved Useful For Payments
Shin said the first phase also demonstrated the potential of deposit tokens as a new payment method.
He added that the ledger’s programmable features can help prevent misuse at the point of transaction. Automated compliance checks and transaction controls can be built directly into the system.
The second phase of Project Hangang is scheduled to begin in the second half of 2026. Early pilot programs will focus on government spending, including subsidies for electric vehicle charging infrastructure and public-sector operating expenses.
Government Bonds Could Be Next
Looking beyond deposit tokens, Shin said the Bank of Korea is evaluating tokenizing other financial assets, especially government bonds.
He said issuing and trading government bonds on the unified ledger could improve the effectiveness of monetary policy. It could also support the central bank’s financial stability goals.
The comments suggest South Korea is exploring wider real-world uses for blockchain-based financial infrastructure, rather than limiting tokenization to digital money.
Cross-Border Payments Remain a Priority
Shin also emphasized the importance of connecting Korea’s digital currency infrastructure with Project Agora, an international initiative to improve cross-border payments through a shared platform for tokenized money from multiple countries.
According to the governor, combining foreign exchange and securities settlement into a single programmable transaction could reduce settlement costs. It could also encourage greater international use of the Korean won in cross-border financial markets.
Related: Bank of Korea Warns Crypto Could Become Systemic Risk as Institutions Enter
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