Toss Payments Selected for South Korea Deposit Token Payment Infrastructure Pilot

Toss Payments named preferred bidder for government-led deposit token pilot to reduce small business fees. Consortium includes nine banks and eight payment firms under KFTC management.

Woofun AI reports that Toss Payments has been selected as the preferred bidder for a government-led initiative to develop deposit token-based payment infrastructure. The project, overseen by the Ministry of Science and ICT and the Korea Internet & Security Agency, aims to reduce payment processing fees for small businesses by leveraging blockchain-recorded commercial bank deposits. Managed by the Korea Financial Telecommunications & Clearings Institute in cooperation with the Ministry of Economy and Finance and the Bank of Korea, the pilot involves a consortium of nine banks, eight payment gateway firms, and two large demand-side participants. Unlike central bank digital currencies, these deposit tokens are issued by commercial banks to streamline interbank settlements and enable programmable payments.