South Korea plans to conduct a 2027 pilot linking tokenized government bonds to its institutional central bank digital currency (CBDC) infrastructure, moving sovereign debt tokenization from a proposal to an official government timeline. 

On Tuesday, the government unveiled its 2026 Economic Growth Strategy for the Second Half, which includes the plan. In addition to assigning a date for the pilot, the strategy said authorities would study how to make the Bank of Korea’s (BOK) CBDC infrastructure interoperable with other blockchains, enabling a potential connection between external distributed ledgers and the bank’s permissioned system. 

The project would test whether South Korea’s wholesale CBDC, designed for use by financial institutions, can support capital markets infrastructure, rather than serving only as a digital payment instrument.

The document did not identify which bonds would be included, the size of the pilot, the participants, or which blockchain technologies would be used. It also did not provide specifics on whether the project would cover the initial issuance of government debt, secondary-market trading or only post-trade settlement. 

South Korea expands blockchain and tokenization agenda

The idea was first outlined publicly on July 1 by BOK Governor Hyun Song Shin during a panel at the European Central Bank Forum on Central Banking. Shin described government bonds as the “big prize” for tokenization and proposed bringing tokenized bonds, wholesale central bank money and tokenized commercial bank deposits onto a unified ledger as an extension of the BOK-led Project Hangang. 

The government strategy said the bond pilot would form part of a broader effort to promote a “blockchain economy.” Authorities plan to introduce measures in the second half of 2026 to support large-scale demonstrations and the development of technologies across the digital asset and blockchain ecosystem. 

However, BOK also warned that faster, continuous settlement can transmit stress more quickly and introduce smart contract, liquidity and data oracle risks.

Related: South Korea adds token securities to capital market overhaul

In addition to the pilot, the strategy called for broader measures to support the country’s blockchain and digital-asset industry, including legislation covering businesses and stablecoins. 

The bond pilot is expected to coincide with the rollout of South Korea’s regulated token securities market. Amendments recognizing distributed ledgers as valid securities registries are scheduled to take effect in February 2027. This allows regulated issuance and circulation of tokenized securities, including stocks, bonds and money-market products.

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