September 23, 2023

South Korea plans to transfer blockchain bond market

South Korea plans to transfer blockchain bond market

The Central Bank of South Korea intends to integrate a new blockchain-based bond market control system.

Currently, the Bank of Korea is looking for a company that can develop a decentralized solution for accounting transactions with bonds, which in the future may become basis for instant payments. They plan to create a blockchain platform taking into account the fact that it will be shared not only by financial institutions, but also by a central bank with a securities market regulator.

However, the Bank of Korea will not launch the system untiluntil it conducts a full assessment of the potential risks of its use. It is also still unknown whether the decision will support only government debt obligations or extend to the corporate sector.

The government decided to upgrade the systemcontrol, since the South Korean bond market is one of the largest in Asia and the state regularly offers foreigners to purchase the Central Bank on favorable terms.

Recall that recently the Bank of Russia announced the successful completion of testing the Norilsk Nickel blockchain platform for asset tokenization.