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first_img The Bank of Korea launches a 24-hour won settlement pilot program aimed at foreign investors

The Bank of Korea (BOK) has launched the first 24-hour Korean won settlement network pilot, aimed at allowing foreign investors to settle won transactions outside of normal banking hours in South Korea. The central bank announced on Monday that its international wire transfer network has begun trial operations with four domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. Full operations are expected to start in January 2027, at which point participation will expand to other institutions and foreign banks.The network operates 24 hours a day on weekdays, excluding weekends and public holidays. Foreign investors can settle won transactions during their domestic business hours by registering a Foreign Institution (RFI-K) account for won services, without the need to open an account directly with a South Korean financial institution. The Bank of Korea stated that the network is expected to enhance the international status of the won by improving foreign investors' access to won settlement infrastructure.In addition, the Bank of Korea is also experimenting with tokenized settlement infrastructure through the Agorá project led by the Bank for International Settlements, which completed a cross-border payment trial using tokenized central bank reserves and commercial bank deposits, including the won, in July. The Bank of Korea is simultaneously advancing the Hangang project, a blockchain-based pilot that utilizes wholesale central bank digital currency to settle tokenized commercial bank deposits.

first_img The European Central Bank calls on e-commerce merchants to participate in the digital euro pilot, aiming for issuance in 2029

According to CoinDesk, the European Central Bank (ECB) called on e-commerce and mobile commerce merchants in the Eurozone on Tuesday to participate in the digital euro pilot program, preparing for the potential issuance of a retail central bank digital currency in 2029. The pilot will test the technology, operational processes, and user experience of the currency's beta version, which, while similar to the digital euro, is not legal tender.The pilot will last for 12 months and is scheduled to launch in the second half of 2027, with the final issuance still requiring legislative and management committee decisions. In the weeks prior, the European Central Bank selected 36 banks and payment institutions to participate in the testing phase. The pilot will involve the European Central Bank, the central banks of 19 Eurozone countries, and selected merchants, with central bank staff testing scenarios such as online and offline transfers between individuals, in-store payments, e-commerce, and mobile commerce payments.European Central Bank President Christine Lagarde stated that the digital euro is essential for maintaining European monetary sovereignty and reducing dependence on dollar-pegged stablecoins. The European Central Bank believes that the proliferation of private dollar stablecoins like Tether's USDT and Circle's USDC poses a threat to European monetary autonomy. Isadora Arredondo, Vice President of Global Policy at Hedera, stated that the success of the digital euro depends more on commercial viability, and merchants need incentives, while payment service providers may consider lowering the fees for merchants accepting digital euro payments.

first_img India's SEBI tokenized bond pilot fundraising exceeds 100 million USD

The Securities and Exchange Board of India (SEBI) announced on Thursday that three issuers raised a total of 102.5 million rupees (approximately 10.72 million USD) through its Demat 2 pilot program by issuing tokenized corporate bonds. This pilot utilizes distributed ledger technology to issue, hold, and settle corporate bonds.REC Ltd. was the first to issue on September 7, raising 50 million rupees (approximately 5.23 million USD) from 18 investors; L&T Ltd. raised a similar amount from 4 investors on September 9, and IIFL raised 25 million rupees (approximately 2.6 million USD) from 1 investor on the same day. SEBI stated that the pilot infrastructure records corporate bonds in the form of native digital tokens on a distributed ledger owned by the depository and achieves atomic settlement of bonds and funds through a unified market interface connected to the Reserve Bank of India’s wholesale central bank digital currency.This mechanism can reduce settlement risks arising from the separation of securities and funds transfer, allowing issuers to receive funds on the same day as the bidding, whereas the existing process typically takes two to three days. The regulator noted that the information of bondholders on the shared ledger is instantly visible to all authorized entities, and at maturity, e₹ payments will go directly into the bondholders' central bank digital currency wallets. SEBI clarified that this pilot does not create a new category of corporate bonds; tokenized bonds retain the same ISIN, issuer obligations, coupon, maturity, covenants, ratings, and investor rights as traditional paperless bonds. The pilot will be implemented in three phases, with the first phase covering institutional issuance, while secondary trading and retail access will be conducted in subsequent phases within SEBI's regulatory sandbox.

first_img India launches a pilot program for the tokenization of corporate bonds worth 620 billion USD, with digital rupees participating in the settlement

The Securities and Exchange Board of India (SEBI) launched the Demat 2 pilot this week, issuing corporate bonds in the form of digital tokens on a distributed ledger operated by regulated market institutions, and settling through the wholesale digital rupee of the Reserve Bank of India. The size of India's corporate bond market is approximately $620 billion.The state-owned power financing institution REC raised ₹50 billion (approximately $56 million) through this system, engineering and construction giant Larsen & Toubro refinanced ₹50 billion, and non-banking financial institution IIFL Finance raised ₹2.5 billion (approximately $2.8 million), totaling around ₹102.5 billion. The bonds retain fixed interest rates, maturity dates, and investor rights, but the tokenized bonds can be settled simultaneously with the digital rupees used for purchase, thereby reducing transaction risk.Subsequent phases will introduce smart contracts to handle corporate actions such as interest payments and redemptions, and there are plans to open secondary market trading, ultimately allowing retail investors to participate. India maintains a cautious attitude towards private cryptocurrencies, and this pilot is an attempt to introduce tokenization into its controlled financial system.
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