South Korean Banks Explore Tokenized Deposit Technology
South Korean private banks are venturing into the realm of tokenized deposit technology as a potential game-changer, offering an innovative alternative to private stablecoins and central bank digital currencies (CBDCs).
A recent report from Maeli Business News Korea revealed that two major banks, Hana Bank and Woori Bank, both headquartered in Seoul, are actively exploring the concept of “certificate of deposit” tokens (CDs). These tokens represent tokenized versions of traditional bank deposits that are securely recorded on the blockchain. By integrating CDs, banks aim to revolutionize the conventional notes and deposits system while maintaining the stability of the existing banking ecosystem. Additionally, CD tokens mandate identity verification at the same rigorous standards applied to any traditional bank service.
Hana Bank has announced its intentions to undertake in-depth research on CD tokens, while Woori Bank’s research department has already released a comprehensive report exploring the potentials and applications of these innovative tokens.