Bank of Korea and Bank of England Deepen Tokenization Collaboration
TREE NEWS reports: On October 20, the Bank of Korea announced that Sarah Breeden, Deputy Governor of the Bank of England, visited the Bank of Korea on October 19 to exchange views on payment and settlement innovation. The two central banks’ working teams shared progress on Project Hangang, Project Agora, and asset tokenization initiatives, and discussed potential cooperation.
Project Hangang: Korea’s Tokenized Deposit Pilot
Project Hangang is the Bank of Korea’s flagship initiative to test tokenized deposits in a wholesale settlement environment. The project explores how distributed ledger technology can improve the efficiency and security of large-value payments, while maintaining the two-tier monetary system. By tokenizing central bank money and commercial bank deposits, the Bank of Korea aims to enable programmability and atomic settlement without compromising financial stability.
Project Agora: BIS-Led Cross-Border Payments Initiative
Project Agora, led by the Bank for International Settlements (BIS) in collaboration with seven central banks including the Bank of Korea and the Bank of England, seeks to enhance cross-border payments by tokenizing correspondent banking. The project brings together public and private sectors to test a unified ledger that combines tokenized central bank money with tokenized commercial bank deposits. This collaboration could significantly reduce costs and delays in international transactions.
Implications for the Global Tokenization Landscape
The meeting between the Bank of Korea and the Bank of England signals growing international coordination on tokenization and digital currency initiatives. As central banks explore tokenized deposits and wholesale CBDCs, private-sector tokenization of real-world assets (RWA) is also accelerating. The collaboration could lead to shared standards and interoperability frameworks, which are crucial for scaling tokenized markets. For investors and institutions, this means a more cohesive regulatory environment and potential new opportunities in tokenized securities, deposits, and cross-border payments.
Forward-Looking Perspective
Central banks are moving from experimentation to implementation. The Bank of Korea’s plan to share its Project Hangang experience internationally and actively participate in global discussions underscores a commitment to shaping the future of money. As tokenization gains momentum, we can expect more cross-border partnerships and concrete pilots that bridge traditional finance and blockchain technology. The coming years will likely see increased regulatory clarity and infrastructure development, paving the way for mainstream adoption of tokenized assets.
