South Korea eyes September for second CBDC pilot phase

South Korea eyes September as the possible start of Project Hangang’s second phase, a Bank of Korea wholesale CBDC pilot that will bring two more banks, peer-to-peer payments and government subsidy tests using tokenized bank deposits, according to a Yonhap News report cited by Cointelegraph. The move matters because it pushes Korea’s wholesale CBDC experiment from basic payment rails toward commercialization. More coverage of similar developments sits in our Fintech & Crypto Alerts section.

Key Takeaways

• The Bank of Korea could begin Project Hangang’s second phase as early as September, per Yonhap via Cointelegraph.
• Participation would rise from seven to nine banks, with Kyongnam Bank and iM Bank joining.
• New features include peer-to-peer transfers, biometric authentication and automated deposit-token tools.
• Phase two will also test government subsidy payments using tokenized bank deposits.
• Phase one (April–June 2025) drew about 81,000 participants and 114,880 deposit-token transactions.

What is changing in South Korea’s CBDC pilot?

Project Hangang is a blockchain-based wholesale CBDC programme. The central bank issues a wholesale CBDC that settles deposit tokens created by commercial banks. Consumers then spend those bank-issued tokens for everyday payments.

According to Cointelegraph’s report, the first phase focused on payment infrastructure. It ran from April to June 2025 and recorded roughly 81,000 participants completing 114,880 transactions with deposit tokens.

The second phase shifts emphasis toward commercialization. That is why south korea eyes september timing matters for banks preparing product features and subsidy workflows.

Which banks and features will the second phase add?

The pilot group would expand from seven banks to nine. Regional lenders Kyongnam Bank and iM Bank are set to join the existing participants.

Beyond the wider bank roster, phase two introduces peer-to-peer transfers and biometric authentication. It also adds new automated deposit token features aimed at making day-to-day use feel closer to commercial payments.

Officials also plan to test government subsidy disbursements through tokenized bank deposits. That trial could show whether CBDC-linked deposit tokens work for public-sector payouts, not only retail spending.

Why does a September launch matter for crypto and fintech?

A September start would keep South Korea among the more active large economies testing wholesale CBDCs and bank deposit tokens together. The design keeps the central bank asset on the wholesale ledger while commercial banks issue consumer-facing tokens.

If peer-to-peer payments, biometrics and subsidy flows work at scale, the pilot could inform how tokenized deposits settle against central-bank money in real use cases. That outcome is closely watched by fintech firms tracking regulated digital money experiments.

For now, the September window remains a reported target rather than a confirmed go-live date. Markets should treat the timeline as provisional until the Bank of Korea publishes firm operational details.