Bank of Korea settles cross-border payments in 80 seconds under Project Agora
The successful pilot demonstrates how tokenized central bank reserves could reshape international payments while strengthening South Korea's wholesale CBDC ambitions.
The Bank of Korea completed a live transaction test under Project Agora this month, settling 30 cross-border payments worth roughly 800,000 Swiss francs across six currencies in an average of 80 seconds each.
The latest trial involved 27 central banks and private financial institutions, with South Korea joining other participants to validate whether the platform could operate reliably under conditions designed to replicate real-world financial markets. The tests confirmed that the underlying technology and operational processes functioned as intended, reinforcing confidence in tokenized reserve-based settlement systems.
The pilot covered six major currencies—the Korean won, U.S. dollar, euro, British pound, Swiss franc and Japanese yen—and involved leading South Korean commercial lenders including KB Kookmin Bank, NongHyup Bank, Shinhan Bank, Woori Bank and Hana Bank.
According to the Bank of Korea, participating institutions completed transactions totaling approximately 800,000 Swiss francs across 17 different payment scenarios, highlighting the growing maturity of Project Agora as an international payments initiative.
The latest phase of Project Agora focused on testing whether tokenized central bank reserves could support practical international payment operations instead of remaining limited to theoretical research.
During the exercise, participating institutions processed several types of cross-border transactions, including single-currency settlements, dual-currency corporate payments, payment-versus-payment foreign exchange settlements, and transfers between institutions belonging to the same financial group.
One of the most significant domestic demonstrations involved the Bank of Korea working with NongHyup Bank and Shinhan Bank to transfer 20 million Korean won using tokenized reserve funds.
The central bank explained that both banks first submitted payment instructions before the Bank of Korea issued, transferred and later redeemed the tokenized reserves through the Project Agora platform. The transaction also relied on a manual interoperability connection between Project Hangang—the country’s wholesale central bank digital currency (CBDC) platform—and the Bank of Korea’s existing financial infrastructure.
The successful completion of the transfer provided important validation that tokenized reserves can integrate with existing banking systems rather than requiring institutions to replace their current payment infrastructure entirely.
The Bank for International Settlements has previously described Project Agora as an initiative designed to explore how tokenization can improve wholesale cross-border payments by combining central bank money with commercial bank deposits on programmable financial platforms.
Commercial banks expand participation in tokenized settlement trials
South Korea’s commercial banking sector also recorded another notable achievement during the latest testing round.
KB Kookmin Bank became the country’s first commercial lender to complete a deposit token payment test involving an overseas financial institution after successfully executing a Japanese yen settlement with Japan’s MUFG Bank. The bank said the experience would strengthen its readiness for future phases of Project Agora as international testing continues.
The Bank of Korea noted that additional live transaction tests are already planned and will include payment scenarios that were not covered during the latest pilot.
The broader initiative complements South Korea’s ongoing efforts to expand Project Hangang, the country’s wholesale CBDC program. Earlier this month, South Korea’s Ministry of Science and ICT and the Korea Internet & Security Agency launched a 9.6 billion won initiative to connect Project Hangang with the country’s existing payment infrastructure.
The program, led by the Korea Financial Telecommunications and Clearings Institute, includes nine commercial banks, payment gateway operators and major merchants testing deposit token payments for retail purchases.
Rather than replacing existing point-of-sale terminals, participating banks issue digital deposit token wallets while merchants continue using their current payment systems. Government agencies also intend to test the technology for public-sector payments before integrating it into South Korea’s broader digital public finance infrastructure.
Bank of Korea keeps CBDCs at the center of digital finance strategy
The latest payment trials also reinforce the Bank of Korea’s long-term commitment to wholesale central bank digital currencies.
Following his appointment as governor in April, Shin Hyun-song emphasized that expanding Project Hangang while actively supporting Project Agora would remain key priorities for strengthening cross-border payment infrastructure and promoting the Korean won in the digital economy.
“The Bank of Korea will continue expanding Project Hangang while participating in international initiatives such as Project Agora,” Shin said during his inaugural address, outlining the institution’s digital finance roadmap.
The central bank has consistently distinguished deposit tokens from privately issued stablecoins.
According to the Bank of Korea, deposit tokens represent commercial bank deposits issued through a wholesale CBDC framework operated by the central bank. Stablecoins, by contrast, are privately issued digital assets backed by reserve assets under separate regulatory arrangements.
Shin has previously argued in research published while serving at the Bank for International Settlements that an ecosystem dominated by multiple private stablecoins could fragment payment systems. More recent discussions, however, suggest that stablecoins may coexist alongside CBDCs under an appropriate regulatory framework.
Stablecoin rules continue alongside digital payment innovation
While Project Agora continues advancing tokenized reserve settlement, South Korean lawmakers are simultaneously developing legislation governing stablecoins and other digital assets.
The Financial Services Commission recently informed the National Assembly that it plans to consolidate ten separate digital asset proposals into a single Digital Asset Basic Act. The proposed legislation is expected to establish rules covering stablecoin issuance, governance, exchange operations, disclosures and operational resilience, although regulators have yet to publish a final draft.
Industry participants have also called for interim licensing guidance that would allow regulated businesses to prepare for issuing won-backed stablecoins before the legislation is finalized.
Meanwhile, the Bank of Korea has maintained that commercial banks should play the leading role in any future stablecoin ecosystem due to considerations surrounding monetary policy, foreign exchange management and financial stability.
The successful completion of the latest Project Agora tests illustrates how central banks are steadily moving beyond experimentation toward practical implementation of tokenized financial infrastructure. As additional testing phases begin, South Korea’s progress is likely to influence broader international discussions on the future of wholesale CBDCs, cross-border settlements and the next generation of digital payments.
