Tokenized Deposits as Alternative to Stablecoins Favored by South Korean Banks in Preparation for CBDCs

South Korean banks' see growing trend towards certificate of deposit tokens as stablecoin alternatives.

South Korean banks are favoring Certificate of Deposit (CD) tokens as potential alternatives to “volatile” stablecoins, as reported by the South Korean news organization Pulse on July 24.

According to Pulse, industry sources revealed that Hana Bank plans to research CD tokens as part of the bank’s preparations for a potential Central Bank Digital Currency on-chain analytics platform Lookonchain stated on July 22. This means at the time, the stash was only worth around $5,108.

Data from blockchain aggregator Blockchair shows that wallet address “bc1qt180…” — which appears to be a fresh wallet — was the recipient of the $31 million.

The balance of the original Bitcoin wallet peaked at $71.6 million when BTC reached its all-time high of $69,044 on Nov. 10, according to cryptocurrency price platform CoinGecko.

The United States government has been one of the biggest BTC movers of late.

(CBDC) project led by the Bank of Korea.

Woori Bank has also expressed interest in CD tokens, as evidenced by a recent report issued by its research body.

South Korean crypto regulation

This development comes when South Korea’s financial regulators are strategizing the final aspects of new rules for the country’s cryptocurrency industry.

As previously reported by Cryptoslate, the impending legislation will focus on regulating crypto-asset issuance, tackling conflicts of interest, and establishing a robust framework to supervise stablecoins.