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Bank of Korea to Add P2P Transfers to CBDC Trials by October
Bank of Korea to Add P2P Transfers to CBDC Trials by October
The Bank of Korea (BOK) “Project Hangang River" wholesale central bank digital currency (CBDC) backed tokenized deposit pilot is reportedly preparing to launch a second phase as early as October. The current three-month (April 1 to June 30, 2025) phase involves about 100,000 participants, and is limited to person-to-business (P2B) payments (for goods and services at online and offline merchants). In the next phase, person-to-person (P2P) transfers will be added, along with expanded use cases and a full rollout of a digital voucher program for welfare payments by local governments.
#CBDC#Korea#Fintech#wCBDC#DepositTokens#DFC
·businesskorea.co.kr·
Bank of Korea to Add P2P Transfers to CBDC Trials by October
Central Bank of Colombia wholesale CBDC proof-of-concept
Central Bank of Colombia wholesale CBDC proof-of-concept
Colombia's Banco de la República (BanRep) is exploring the use of a wholesale central bank digital currency (CBDC) in a tokenized financial market based on distributed ledger technology (DLT). As part of this agenda, BanRep, in collaboration with the Ministry of Information Technology and Communications, Ripple and Peersyst, is conducting an experiment to issue wholesale CBDC and tokenized securities. This involves building a scalable blockchain prototype in a test environment with simulated participants. The experiment evaluates efficiencies in delivery versus s payment (DVP) for primary issuance and in the clearing and settlement of transactions in the secondary market, as well as direct CBDC transfers between the wallets of financial entities on the blockchain.
#Fintech#Tokenization#CBDC#wCBDC#DepositTokens#Colombia#Ripple#DFC#Settlement
·bis.org·
Central Bank of Colombia wholesale CBDC proof-of-concept
BCB releases report on Drex POC Phase 1
BCB releases report on Drex POC Phase 1
Banco Central do Brasil (BCB) published a report on the main developments in the first phase of its Drex wholesale central bank digital currency (CBDC) proof-of-concept (POC) work, which took place between July 2023 and October 2024. (None of the Drex tests involved real clients or assets, but rather fictitious ones.) The report highlighted the trilemma of finding a solution that balances decentralization, programmability, and privacy issues at the same time, while being compliant to the Brazilian legal framework. I'm still digesting a Google Translate version (it's only available in Portuguese) of the 73-page report, and may come back with more detail later.
#Fintech#Brazil#Tokenization#CBDC#wCBDC#DFC#DepositTokens
·bcb.gov.br·
BCB releases report on Drex POC Phase 1
Custodia Bank partners Vantage for first US bank 'stablecoin' issuance
Custodia Bank partners Vantage for first US bank 'stablecoin' issuance
Custodia Bank has partnered with Texas community bank Vantage to mint, transfer and redeem a deposit token on the Ethereum blockchain. The reason for using quotes around the term “stablecoin” is because deposit tokens on a permissionless blockchain appear similar to stablecoins, but if they are purely backed by deposits and issued by a bank, then legally they are different. They’re simply a bank deposit using a different technology. With stablecoin laws progressing through Congress, both the House and Senate versions of the legislation exclude bank-issued tokens backed by deposits, precisely for this reason. https://x.com/caitlinlong_/status/1904523878195507299?s=46
#Fintech#Stablecoins#UnitedStates#Custodia#DepositTokens#DFC
·ledgerinsights.com·
Custodia Bank partners Vantage for first US bank 'stablecoin' issuance
Digital Fiat Currency (DFC) Defined (ITU)
Digital Fiat Currency (DFC) Defined (ITU)
Digital fiat currency (DFC) is a tokenized, digital representation of a sovereign currency issued by an authorized public or private entity. When issued and distributed by a central bank or other monetary authority, it is a central bank digital currency (CBDC). If it is issued by a private entity, it may be e-money or another form of digital commercial bank money/private digital tokens/stablecoins, even if backed by central bank money.
#Fintech#CBDC#Stablecoins#DepositTokens#eMoney#DFC#ITU
·itu.int·
Digital Fiat Currency (DFC) Defined (ITU)
Are stablecoins ready for payments?
Are stablecoins ready for payments?
Most closed loop systems can offer fast and seamless transactions. The real challenge in payments arises in open loops. They require clearing arrangements by which financial institutions accept monies from other institutions. To allow stablecoins to be used to conduct payments more generally, there needs to be clearing arrangements between stablecoins and banks. The viability of stablecoins will depend on its efficient operation in open loop applications. Whether they become a core payment instrument or remain niche will be an outcome in large part of their ability to bridge the gap between crypto ecosystems and the banking system. (Ousmène Jacques Mandeng)
#Fintech#Stablecoins#DepositTokens#CryptoAssets#DFC
·blogs.lse.ac.uk·
Are stablecoins ready for payments?
Bank of Korea to Begin CBDC Pilot in April
Bank of Korea to Begin CBDC Pilot in April
The Bank of Korea (BOK) will launch its wholesale central bank digital currency (CBDC) pilot next month (April 2025). Participants will be able to convert their bank deposits into tokenized deposits and use them for payments at affiliated merchants. The purpose of the distributed ledger technology (DLT) based wholesale CBDC is to settle the tokenized deposit transactions across the seven participating banks. Currently, interbank transfers are settled via transfers across banks' BOK reserve accounts. To recruit approximately 100,000 pilot participants for the experiment, the BOK reportedly plans to issue a public announcement by the end of this month (March 2025).https://www.bok.or.kr/portal/bbs/B0000502/view.do?nttId=10090447&menuNo=100847&pageIndex=1
#CBDC#Korea#Fintech#wCBDC#DepositTokens#DFC
·businesskorea.co.kr·
Bank of Korea to Begin CBDC Pilot in April
South Korea to launch a CBDC pilot
South Korea to launch a CBDC pilot
The Bank of Korea will reportedly launch a three-month central bank digital currency (CBDC) pilot involving 100,000 consumers, as early as this month (March 2025). It will involve seven major commercial banks that will issue deposit tokens backed by CBDC, which consumers can use to make purchases at various participating merchants. The tokens, valued up to 1 million won per person, will be distributed through electronic wallets, allowing users to make payments by displaying QR codes.
#CBDC#Fintech#Korea#DFC#DepositTokens
·biz.chosun.com·
South Korea to launch a CBDC pilot
Banco Central do Brasil (BCB) Drex pilot update
Banco Central do Brasil (BCB) Drex pilot update
Banco Central do Brasil (BCB) published a technical report on the first phase of the Drex wholesale central bank digital currency (CBDC) pilot that focused on testing the use of tokenized deposits. The platform used was a private, permissioned version of the Ethereum blockchain. The pilot involved the participation of 16 financial institutions, which were selected from a pool of 36 candidates. The pilot tested a range of use cases, including the issuance and transfer of tokenized deposits, as well as the settlement of transactions involving tokenized government bonds. The BCB found a tough “trilemma” between privacy, programmability, and oversight. Advanced cryptography (like zero-knowledge proofs) can hide transaction details to protect user privacy, but this also makes it hard for regulators to monitor illicit activity, or even for the system to run complex smart contracts. The next phase of the pilot program, which started in November 2024, is focusing on advancing privacy while allowing pilot participants to suggest more use cases. See also: https://www.ledgerinsights.com/drex-privacy/
#Brazil#CBDC#DLT#wCBDC#Tokenization#Settlement#Fintech#DFC#DepositTokens
·bcb.gov.br·
Banco Central do Brasil (BCB) Drex pilot update
National Bank of Georgia launches tokenized deposit sandbox
National Bank of Georgia launches tokenized deposit sandbox
The National Bank of Georgia (NBG) is inviting supervised entities to participate in its Regulatory Sandbox’s tokenized deposits project, the goal of which is to create a regulatory framework with the involvement of stakeholders. The country's financial ecosystem does not currently regulate the use and offering of distributed ledger technology (DLT) based deposits and certificates of deposit (CDs). This project will potentially contribute to the creation of new financial products, the diversity of the financial ecosystem, the development of a CD secondary market, greater flexibility and diversification of deposit products, and optimization of product-related costs.
#Fintech#Regulation#Sandboxes#Tokenization#Georgia#DepositTokens#CryptoAssets#Stablecoins#DFC
·nbg.gov.ge·
National Bank of Georgia launches tokenized deposit sandbox
How Deposit Tokens Are Changing The Digital Money Ecosystem
How Deposit Tokens Are Changing The Digital Money Ecosystem
"Like bank deposits that make up over 90% of the money in use today, tokenized deposits can support a variety of use cases including domestic and cross-border payments, trading and settlement, and provision of cash collateral. In a token form, commercial bank money becomes a programmable instrument that operates 24/7 and can be transferred instantly, without relying on intermediaries. These technical features allow “deposit tokens” to express sophisticated payment operations and to act as collateral that travels within minutes."
#Fintech#CryptoAssets#Stablecoins#DepositTokens#DFC
·oliverwyman.com·
How Deposit Tokens Are Changing The Digital Money Ecosystem
The Deposit Token: SBA white paper on a digital Swiss franc
The Deposit Token: SBA white paper on a digital Swiss franc
"The Swiss Bankers Association (SBA) has published a white paper on a digital Swiss franc, in which it outlines various designs of “tokenised” deposits on the blockchain. If issued by regulated banks, a deposit token could make an important contribution to Switzerland’s future competitiveness and innovative power, as well as bolster its sovereignty."
#Fintech#CryptoAssets#Stablecoins#Switzerland#Tokenization#DFC#DepositTokens
·swissbanking.ch·
The Deposit Token: SBA white paper on a digital Swiss franc
Japan’s first deposit-type stablecoin “Tochika” has been launched
Japan’s first deposit-type stablecoin “Tochika” has been launched

Japan’s first deposit-backed stablecoin “Tochika” has been launched Hokkoku Bank together with the City of Suzu and Kono Shinkin Bank, has launched the “Suzu Tochika” deposit-backed blockchain-based stablecoin in Suzu City, Ishikawa Prefecture. In the summer of 2023, the consortium launched the “Suzu Tochituka” digital payment service for Suzu City-issued “Suzu Tochipo” points used for payments at participating stores. A Tochika account can be opened by registering a bank deposit account for charging the Tochituka app, with 1 tochika equating to 1 yen, and later redeemed at the same rate. Tochika is accepted at Tochituka member stores. Merchants pay a 0.5% settlement fee on Tochika transactions.

#Fintech#CryptoAssets#Stablecoins#DepositTokens#Tokenization#Japan#DFC
·medium.com·
Japan’s first deposit-type stablecoin “Tochika” has been launched
Stablecoins’ impact on banks’ balance sheets and prudential ratios
Stablecoins’ impact on banks’ balance sheets and prudential ratios
The European Central Bank (ECB) published a paper that explores the relationship between banks, and stablecoins and their issuers, focusing on the mechanical effects on banks’ capital and liquidity ratios when issuing stablecoins or collecting deposits from stablecoin issuers. The analysis reveals that converting retail deposits into stablecoin issuers’ deposits weakens a bank’s liquidity coverage ratio (LCR), turning a retail deposit into a wholesale deposit, even when these funds are reinvested in high-quality liquid assets (HQLA). If a credit institution issues its own stablecoins, the impact on its LCR depends on whether it can identify the stablecoin holders; unknown holders weaken the LCR which could incentivize banks to issue stablecoins where they can continually identify the holders to benefit from more favorable liquidity treatment. The study also finds that when retail customers of bank A buy a stablecoin issued by a non-bank that keeps reserves at bank B, both banks could see an unexpected decline in their liquidity ratios, as bank A loses stable retail deposits and bank B gains volatile wholesale deposits.
#Fintech#CryptoAssets#Stablecoins#DepositTokens#Regulation#DFC
·ecb.europa.eu·
Stablecoins’ impact on banks’ balance sheets and prudential ratios
Public and Private DLT-Based Money Creation: CBDC, Stablecoins, or Tokenized Deposits?
Public and Private DLT-Based Money Creation: CBDC, Stablecoins, or Tokenized Deposits?
The Bank of Canada (BOC) published a paper that uses a general equilibrium monetary model to explore the impact of introducing "tokenized money" (central bank digital currency (CBDC) or tokenized deposits) on stablecoins. It finds that when tokenized monies pay a high interest rate and guarantee a high degree of anonymity, they crowd out stablecoins. Conversely, with low anonymity and low interest rates, tokenized monies become collateral, promoting stablecoin development. CBDCs dominate tokenized deposits because a central bank can better economize on scarce collateral assets, and banks face incentive problems and do not internalize the societal cost of their activities, generating negative externalities.
#Fintech#CBDC#CryptoAssets#Stablecoins#Canada#DFC#DepositTokens
·bankofcanada.ca·
Public and Private DLT-Based Money Creation: CBDC, Stablecoins, or Tokenized Deposits?
OMFIF Digital Assets 2024 Report: The Long-Awaited Revolution
OMFIF Digital Assets 2024 Report: The Long-Awaited Revolution
The Official Monetary and Financial Institutions Forum (OMFIF) published its annual survey-based digital assets report. 26 survey respondents comprised of bond issuers, banks and investors, the majority of which were public sector bond issuers, indicated a slow but steady gathering of momentum behind the adoption of blockchain and distributed ledger technology (DLT). About 38% said they are looking at adopting them in debt issuance. Central bank digital currency (CBDC) was chosen by 59% of respondents as the preferred cash settlement for tokenized assets, with only 23% favoring bank-issued stablecoins (e.g., tokenized deposits). The OMFIF results regarding settlement assets differ greatly from those of a recent, more private-sector focused, Citibank survey, which found that 65% plan to use non-CBDC options, versus 15% who plan to use CBDCs. CBDCs were the preferred form of digital money at 52% in the previous year's survey. However, the Citibank survey respondents were comprised of 494 industry participants, 43% of which were banks, 15% custodians, 14% asset managers, 11% broker-dealers, and 10% institutional investors. https://www.citigroup.com/global/news/press-release/2024/digital-money-including-tokenized-deposits-on-the-uptick
#Fintech#CBDC#wCBDC#Tokenization#Settlement#Stablecoins#DepositTokens#OMFIF#DFC
·omfif.org·
OMFIF Digital Assets 2024 Report: The Long-Awaited Revolution
MAS Lays Foundation for Safe and Innovative Use of Digital Money in Singapore
MAS Lays Foundation for Safe and Innovative Use of Digital Money in Singapore
The Monetary Authority of Singapore (MAS) unveiled three initiatives to ensure the safe and innovative use of digital money in Singapore. First there is the Orchid Blueprint that sets out the technology and infrastructure building blocks that would be required to facilitate digital money transactions in the future. Second there are four new Project Orchid digital money trials, including testing the broad applicability of purpose bound money, which enables money to be directed towards a specific purpose, without requiring money itself to be programmed. Third “live” wholesale CBDC will be tested, with the first pilot focusing on settling retail payments between commercial banks, and future pilots possibly focusing on settling cross-border securities trades. The Orchid Blueprint will support single-currency stablecoins that will be regulated for their value stability under MAS’ proposed regulatory framework for stablecoin activities. The Blueprint will also support tokenized bank deposits issued by MAS-regulated banks.
#Fintech#CBDC#Stablecoins#DepositTokens#wCBDC#Singapore#Regulation#DFC
·mas.gov.sg·
MAS Lays Foundation for Safe and Innovative Use of Digital Money in Singapore
When It Comes To Digital Currency, Everything Old Is New Again
When It Comes To Digital Currency, Everything Old Is New Again
"I could imagine holding bank-issued stablecoins in my digital wallet, but I have a suspicion that in time most people will drift towards tokens backed by central bank reserves. In other words, in a world with a Digital Pound, it’s not clear why anyone would hold Barclays Bunce, CapOne Cabbage, Wells Wonga or Lloyds Lolly."
#Fintech#CryptoAssets#Stablecoins#CBDC#DepositTokens#DFC
·forbes.com·
When It Comes To Digital Currency, Everything Old Is New Again
Hong Kong launches DLT incubator for banks
Hong Kong launches DLT incubator for banks
The Hong Kong Monetary Authority (HKMA) unveiled a “Supervisory Incubator for Distributed Ledger Technology”, with tokenized deposits as a major focus. At the individual bank level, the Incubator will offer a one-stop supervisory platform that enables banks to reaffirm the adequacy of their risk management controls prior to the full launch of a DLT-based initiative. By leveraging this platform, banks will have access to a dedicated team from the HKMA for obtaining supervisory feedback and may opt to conduct live trials to validate and refine specific aspects of their risk management implementation under a hands-on and iterative approach, as needed. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/01/20250108-3/
#Fintech#DLT#HongKong#Tokenization#Regulation#DepositTokens#DFC
·ledgerinsights.com·
Hong Kong launches DLT incubator for banks
The EBA assesses potential benefits and challenges of tokenised deposits
The EBA assesses potential benefits and challenges of tokenised deposits
The European Banking Authority (EBA) published a report to facilitate awareness of tokenized deposits, as well as assess their potential benefits and challenges. The report also aims to promote convergence in the classification of tokenized deposits in contrast with electronic money tokens (EMTs) issued by credit institutions under the Markets in Crypto-Assets Regulation (MiCAR).
#Fintech#DepositTokens#Europe#Regulation#DFC
·eba.europa.eu·
The EBA assesses potential benefits and challenges of tokenised deposits
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
The Digital Euro Association (DEA) published a paper that dives into the potential impact of tokenized deposits (TDs) on financial stability, monetary policy, anti-money laundering (AML) and know your customer (KYC) processes, and privacy considerations. The paper offers comprehensive primer into the potential of TDs, alongside considerations on how they could complement and co-exist with other forms of digital money.
#Fintech#Tokenization#DepositTokens#DFC
·blog.digital-euro-association.de·
Banking on Tokens: A Primer on Tokenized Commercial Bank Deposits
Finternet: the financial system for the future
Finternet: the financial system for the future
The Bank for International Settlements (BIS) published its vision for a "Finternet" of multiple financial ecosystems interconnected with each other, much like the internet. The envisioned system leverages tokenization and unified ledgers, underpinned by a robust economic and regulatory framework, to dramatically expand the range and quality of financial services. The paper provides a blueprint for how key technical characteristics like interoperability, verifiability, programmability, immutability, finality, evolvability, modularity, scalability, security and privacy can be incorporated, and how varied governance norms can be embedded.
#Fintech#DepositTokens#UnifiedLedger#BIS#DFC
·bis.org·
Finternet: the financial system for the future
UK Finance announces new RLN experimentation phase
UK Finance announces new RLN experimentation phase
UK Finance announced work on a new UK Regulated Liability Network (RLN) experimentation phase with eleven of its members. The UK RLN is envisaged as a common "platform for innovation" across multiple forms of money, including existing commercial bank deposits and a shared ledger for tokenized commercial bank deposits. It will focus on three use cases; payment-upon-delivery for a physical product, the process of buying a home, and digital bond settlement. The experimentation phase will run until summer 2024 and will cover customer and business benefits, technical feasibility via proofs of concept in a technology sandbox, and the legal framework.
#Fintech#DepositTokens#Tokenization#UnitedKingdom#RegulatedLiabilityNetwork#DFC
·ukfinance.org.uk·
UK Finance announces new RLN experimentation phase
German banks share tokenized deposit trial results
German banks share tokenized deposit trial results
The German Banking Industry Committee (GBIC) published the results of a proof of concept (POC) for its distributed ledger technology (DLT) based commercial bank money token (CBMT) project. CBMT is focused on serving large corporates, especially industrial companies, allowing them to hold tokens from multiple banks and to make P2P (B2B) transactions 24/7/365. Results confirmed that the CBMT is viable and offers considerable potential, enabling the realization of a variety of use cases across corporate functions. Results also showed that the CBMT works across a variety of DLT platforms, has the potential to scale and should present no barrier to integration into existing systems via application programming interfaces (APIs). https://die-dk.de/media/files/240716_DKBDI_position_CBMT_final.pdf
#Fintech#DLT#Blockchain#Tokenization#DepositTokens#Germany#DFC
·ledgerinsights.com·
German banks share tokenized deposit trial results
Deutsche Bank, UBS settle tokenized deposit payments in Bundesbank Trigger solution experiment
Deutsche Bank, UBS settle tokenized deposit payments in Bundesbank Trigger solution experiment
UBS and Deutsche Bank have reportedly simulated tokenized deposit payments between the banks as part of the European Central Bank (ECB) wholesale distributed ledger technology (DLT) settlement trials. The Bundesbank’s Trigger solution, that enables blockchain based systems to link to the Trigger Chain, which in turn initiates a payment on the Target2 payment system in central bank money, was used. Adhara, the technology partner of Fnality, provided the orchestration layer that ensures that all the separate settlement legs of the transaction happen atomically. One of the two trails simulated transactions between Deutsche Bank London and UBS in Switzerland involving pounds and Swiss francs, which were settled using euros.
#Fintech#CBDC#wCBDC#Tokenization#DLT#Eurozone#ECB#CrossBorder#DepositTokens#DFC
·ledgerinsights.com·
Deutsche Bank, UBS settle tokenized deposit payments in Bundesbank Trigger solution experiment
Brazil’s central bank selects consortium to support Drex trade finance use case experiments
Brazil’s central bank selects consortium to support Drex trade finance use case experiments
Banco Central do Brasil has reportedly selected Banco Inter alongside Microsoft Brazil, 7COMm and Chainlink to build a trade finance solution as part of the 2nd phase of Brazil’s DREX central bank digital currency (CBDC) experimentation. The solution leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes. The goal of the pilot is to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies.
#Fintech#CBDC#wCBDC#TradeFinance#CrossBorder#Brazil#DFC#DepositTokens#Chainlink
·prnewswire.com·
Brazil’s central bank selects consortium to support Drex trade finance use case experiments
Exploring the role of digital money in wholesale tokenised asset markets
Exploring the role of digital money in wholesale tokenised asset markets
The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) published a consultation paper which seeks industry feedback on a new research initiative, Project Acacia. This project will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. The consultation paper seeks expressions of interest from industry in participating in an experimental research phase for Project Acacia, and in joining an Industry Advisory Group for the project. Input is also sought on the technical and functional capabilities of new forms of settlement infrastructure and digital money, including wholesale central bank digital currency (CBDC) and tokenized bank deposits, that could promote well-functioning tokenized asset markets and stability in the financial system.
#Fintech#CBDC#wCBDC#Tokenization#Australia#DepositTokens#DFC
·rba.gov.au·
Exploring the role of digital money in wholesale tokenised asset markets
Seven South Korean banks to participate in CBDC-driven pilot
Seven South Korean banks to participate in CBDC-driven pilot
South Korea‘s Financial Services Commission (FSC) has authorized seven domestic banks to participate in a pilot program testing digital financial services based on central bank digital currency (CBDC) and deposit tokens. The pilot project will offer digital vouchers via QR codes, which users can scan with their smartphones to redeem government-provided benefits digitally at registered merchants, including educational institutions, cultural centers, and welfare-related outlets. The FSC did not specify a timeline for the pilot. https://www.fsc.go.kr/no010101/83337
#Fintech#CBDC#Korea#wCBDC#DepositTokens#DFC
·crypto.news·
Seven South Korean banks to participate in CBDC-driven pilot
HKMA commences Phase 2 of e-HKD Pilot Programme
HKMA commences Phase 2 of e-HKD Pilot Programme
[September 24, 2024] The Hong Kong Monetary Authority (HKMA) has commenced Phase 2 of its e-HKD exploration programme to delve deeper into innovative use cases and commercial feasibility for new forms of digital money, including e-HKD and tokenized deposits, that can potentially be used by individuals and corporates, within a real-world setting. 11 groups of firms from various sectors will test the settlement of tokenized assets, programmability and offline payments.
#Fintech#CBDC#wCBDC#DepositTokens#HongKong#DFC
·hkma.gov.hk·
HKMA commences Phase 2 of e-HKD Pilot Programme