South Korea to pilot tokenized bonds on CBDC in 2027

South Korea has unveiled a comprehensive economic strategy for the second half of 2026 that advances its blockchain and digital asset agenda while prioritizing massive investment in artificial intelligence and semiconductors. The plans, confirmed by the Ministry of Economy and Finance following a State Council meeting on July 14, include a scheduled 2027 pilot for tokenizing government bonds using the Bank of Korea's wholesale central bank digital currency infrastructure.

The government's roadmap pairs this long-term financial infrastructure project with imminent regulatory action. Authorities will advance the proposed Digital Asset Basic Act, which is expected to establish a legal framework for digital asset businesses and set standards for Korean won-pegged stablecoins. Concurrently, the government will create a legal basis for cross-border stablecoin transactions and support amendments to the Capital Markets Act to enable South Korea's first spot cryptocurrency exchange-traded funds.

The tokenized government bond pilot, first publicly outlined by Bank of Korea Governor Hyun Song Shin earlier this month, represents a move to test sovereign debt tokenization from proposal to...