The Bank of Korea has presented a concept for a unified-ledger payment platform that would settle tokenized financial assets and payments through a single digital infrastructure. The proposal comes as major central banks examine ways to modernize settlement systems amid the growing use of blockchain-based securities and other digital financial instruments.

The initiative was discussed at the Bank of Korea’s 2026 Payment Systems Conference on November 11. The event focused on innovation in payment infrastructure and policy challenges in digital finance. Representatives from the Bank of England, Nexus Global Payments and the Central Bank of Brazil also presented their approaches to updating payment networks.

The presentations outlined two different strategies for incorporating blockchain technology into financial infrastructure. South Korea is examining a unified ledger that would combine asset transfers and payments, while the United Kingdom is developing a model that links its existing central bank payment network to external distributed ledger technology (DLT) platforms.

The Bank of Korea’s proposed model would allow tokenized financial assets and money to be traded and settled on the same infrastructure. The approach could simplify transactions between financial institutions by bringing the asset and payment components of a settlement into a single system.

Bank of England Advances Synchronized Settlement

Andrei Pustelnikov, who leads wholesale settlement innovation experiments at the Bank of England, presented the British central bank’s synchronized settlement approach. Under this model, the Bank of England’s existing payment infrastructure would connect to external platforms that handle tokenized assets.

The system is designed to ensure that a digital asset and its corresponding payment are transferred simultaneously. This could reduce settlement risks in transactions where one party transfers an asset without receiving payment, or sends funds without obtaining the agreed security.

The Bank of England maintains that central bank money should remain the foundation of financial settlement even as the underlying technology changes. The institution is testing tokenized securities settlement with 18 organizations, including the London Stock Exchange, and is targeting live implementation for 2028. It also plans to publish operational and regulatory guidelines in 2027.

The Bank of England additionally intends to participate in Project Agora, an international initiative involving the Bank of Korea and other major central banks. The project is examining the issuance and operation of tokenized central bank reserves and commercial bank deposits from multiple countries through shared infrastructure.

Nexus Project Targets Six Connected Asian Payment Networks

Cross-border payments and smaller-value transactions were also major topics at the conference. Andrew McCormack, chief executive of Nexus Global Payments (NGP), presented the Nexus Project, which aims to connect the real-time payment systems of India, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

The initiative is intended to let participating countries process international transfers through a common platform instead of building separate cross-border payment networks. The project seeks to simplify international remittances by linking the six countries through interoperable real-time payment infrastructure, with a target launch in the fourth quarter of 2027.

The connectivity could reduce operational complexity for participating financial institutions and improve the efficiency of international payments. Its broader effect, however, will depend on implementation and participation across all six markets.

Brazil’s Pix Highlights Central Bank Payment Infrastructure

The Central Bank of Brazil presented its experience with Pix, an instant payment system introduced in 2020 and operated directly by the central bank. Pix supports round-the-clock transfers as well as online and offline payments.

By 2025, Pix accounted for 56% of Brazil’s small-value payments, overtaking credit cards and other payment methods. Transaction volumes reached 79.8 billion during the year, a 25% increase from 2024.

Jose Vicente Matos Santana, a team leader at the Central Bank of Brazil, cited broad participation by banks, fintech companies and other payment providers, together with free consumer access, as important factors behind Pix’s adoption.

The central bank has also been strengthening transaction limits and mechanisms for returning funds lost through fraud as it addresses increasing cybersecurity and financial crime risks.

Central Banks Examine Tokenization Challenges

The differing approaches presented at the conference reflect a wider challenge for financial regulators as stocks, bonds and other traditional assets increasingly move onto blockchain networks. Tokenized securities require reliable settlement infrastructure that can coordinate changes in asset ownership with corresponding payments.

Central banks must therefore determine how private blockchain platforms can interact with established financial systems while preserving the role of central bank money as the final settlement instrument. The Bank of Korea indicated that it was reviewing international experience and private-sector developments to determine how South Korea’s payment and settlement infrastructure should evolve.

The differing models, including unified-ledger systems and synchronized settlement arrangements, could influence future standards for tokenized securities, institutional payments and cross-border financial transactions. As central banks test various technological approaches, their decisions could affect how financial institutions and fintech companies participate in emerging digital asset markets.

Source: CoinTrust