Bank of Korea governor backs tokenized government bonds and unified ledger

Bank of Korea Governor Hyun Song Shin said tokenizing government bonds is the 'big prize' for blockchain in finance, speaking at the ECB Forum. He outlined plans for a unified ledger combining tokenized bonds, wholesale CBDC and commercial bank deposits under Project Hangang.

• Tokenized bonds simplify issuance, collateral verification and settlement, reducing errors versus manual processes.
• US Treasury debt is already the largest tokenized RWA category at $14.6 billion, or 46% of the market.
• The BIS found 'suggestive evidence' that tokenized bonds have lower bid-ask spreads than traditional bonds.
• Project Hangang is the Bank of Korea's pilot testing a blockchain-based wholesale CBDC system.

Coinporta summarises news for fast scanning. Full reporting belongs to the source.