Korean banks research stablecoin, CBDC alternative

Korean banks research stablecoin, CBDC alternative

Several private banks in South Korea are studying the potential of tokenized deposit technology, an alternative to both private stablecoins and central bank digital currencies (CBDCs).

According to a report from Maeli Business News Korea, Hana Bank and Woori Bank — both private enterprises with headquarters in Seoul — showed interest in so-called “certificate of deposit” tokens (CDs). CDs are tokenized bank deposits put on the blockchain, replacing customary notes and deposits without disrupting the existing banking system. CDs also require identity verification of the same standards as any traditional bank service.

Hana Bank plans to research CD tokens, while Woori Bank’s research department has recently released a report on the tokens.