Korea Unveils Blockchain Strategy to Tokenize Government Bonds

South Korea has announced a major blockchain finance initiative that will see government bonds tokenized and integrated into its financial system. The country's economic strategy, outlined in the second half of this year, places digital assets, artificial intelligence, and advanced manufacturing among its top priorities.

The plan is designed to support future industries while creating new sources of long-term economic growth. A blockchain-based pilot project will be launched next year to tokenize government bonds, with a system connecting it to the Bank of Korea's institutional central bank digital currency (CBDC) also under review.

Lawmakers are pushing forward the proposed Digital Asset Fundamental Act, which will establish legal frameworks for stablecoins and set regulatory standards for digital asset businesses. The act is expected to be introduced soon.