South Korea’s Central Bank Plans to Establish Blockchain System for Bond Market to Record Trading Activity

The South Korean Central Bank intends to use blockchain technology to study a new system to record bond market trading activities and even become an infrastructure for real-time transactions. The design philosophy of this platform is to allow financial institutions, South Korea’s central bank, and the Fair Trade Commission of the regulator to share bond transaction data.

South Korean financial media “Yonhap Infomax” recently quoted local officials as saying that the South Korean central bank is looking for blockchain companies to help develop new systems and hopes to improve the performance of recording activities in the bond market. However, the central bank should not launch a bond trading system based on blockchain until relevant regulations become more complete.

At present, South Korea is one of the largest bond markets in the world. The government issues bonds regularly, and it is also a leader in Asia in areas such as green bonds. The size of its bond issuance in June last year has exceeded $ 6 billion, exceeding the size of China’s $2 billion bond market.

The South Korean central bank has stated that it was inspired by the World Bank, which previously issued two bonds totaling $108 million on a private platform within the Ethereum. However, it is unknown at present whether the South Korean central bank will only use the bonds issued by the government after the establishment of this blockchain record system, or will it be extended to the corporate bond market.