South Korea Advances Cross-Border Payments With Project Agora

TLDR

• South Korea completes live cross-border payment tests under Project Agora today.
• Tokenized reserves supported settlements across six major global currencies.
• Institutions tested 17 payment scenarios worth about 800,000 Swiss francs in total.
• Bank of Korea transferred 20 million won between banks using tokenized reserves.
• KB Kookmin completed a yen deposit token payment test with Japan’s MUFG Bank.

South Korea has completed live cross-border payment tests under Project Agora, marking a new step in tokenized settlement infrastructure. The Bank of Korea used tokenized central bank reserves across several transaction types and confirmed stable platform operations. The test linked domestic banks with international institutions across six major currencies.

Twenty-eight central banks and financial institutions joined the exercise, including five commercial banks from South Korea. KB Kookmin, NongHyup, Shinhan, Woori, and Hana Bank represented the country during the testing phase. Participants processed transactions worth about 800,000 Swiss francs through 17 separate scenarios.

The tests covered single-currency payments, dual-currency payments, foreign exchange settlements, and internal group transfers. Participants also completed payment-versus-payment settlements, which reduce risk by exchanging both currencies at the same time. These results showed that Project Agora can support complex cross-border banking processes under conditions close to live operations.

Tokenized Reserves Link Domestic Banks

The Bank of Korea also tested a 20 million won interbank transfer with NongHyup Bank and Shinhan Bank. It issued, transferred, and redeemed tokenized reserves after receiving payment instructions from both lenders. The transaction demonstrated how South Korea could connect central bank money with tokenized commercial banking systems.

During the test, officials manually linked Project Hangang with the Bank of Korea’s existing financial network. This connection allowed the central bank to check interoperability between domestic systems and the wider Agora platform. South Korea now plans further work on direct links and more automated settlement processes.

KB Kookmin Bank completed a yen-based deposit token test with Japan’s MUFG Bank. The trial made KB Kookmin the first commercial bank in South Korea to complete such an overseas payment test. The bank plans to join later Project Agora stages and expand its cross-border token settlement work.

Project Hangang Supports Broader Payment Strategy

Project Hangang remains central to South Korea’s broader digital payment strategy and wholesale central bank digital currency development. The program connects deposit tokens with existing payment systems without requiring merchants to replace their terminals. Banks can issue digital wallets, while retailers continue using established point-of-sale infrastructure.

Government agencies also plan public-sector payment tests before linking the system with the national digital finance platform. South Korea separates deposit tokens from stablecoins because each model follows a different legal and financial structure. A wholesale central bank framework supports deposit tokens representing commercial bank deposits.

Stablecoin regulation continues on a separate track through the proposed Digital Asset Basic Act. Financial authorities plan to combine several pending proposals covering issuance, trading, disclosures, governance, and operational controls. Meanwhile, South Korea will continue Project Agora testing and expand scenarios not included in the latest exercise.