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Shinhan Asset Management partners with Plume on tokenized fund pilot

Created at 14 Aug · 11:36 AM1 source↑ Market-relevant
IN SHORT

Shinhan Asset Management and Plume are collaborating on a pilot project to tokenize a Korean won-denominated ultra-short-term bond fund. The initiative aims to test the issuance, distribution, and compliance of tokenized financial products in onchain markets.

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Who's Involved

Shinhan Asset Management
South Korean asset manager partnering on tokenized fund pilot
Plume
Blockchain network focused on tokenization
BlackRock
Asset manager whose BUIDL tokenized fund will serve as a benchmark
Shinhan Financial Group
Parent company of Shinhan Asset Management, Shinhan Card, and Shinhan Bank
Solana Foundation
Partnered with Shinhan Card for stablecoin testing

↳ Why This Matters

This pilot project signifies a step towards integrating traditional financial assets with blockchain technology in South Korea, potentially opening new avenues for global on-chain markets and exploring the use of non-dollar currencies in tokenized products.

Key facts

  • Shinhan Asset Management and Plume will pilot a tokenized fund.
  • The fund will be backed by a Korean won-denominated ultra-short-term bond fund.
  • BlackRock's BUIDL tokenized fund will be used as a benchmark.
  • The pilot will test issuance, distribution, and compliance processes for tokenized assets.
  • The initiative aims to explore the use of won-denominated products in global onchain markets.

South Korea's Shinhan Asset Management has entered into a memorandum of understanding with Plume, a blockchain network specializing in tokenization. The partnership aims to develop a proof of concept for a tokenized fund denominated in Korean won.

The pilot project will utilize a Shinhan-issued ultra-short-term bond fund as the underlying asset. BlackRock's BUIDL tokenized fund will serve as a benchmark to evaluate the issuance and distribution processes. The collaboration will also focus on testing regulatory compliance for tokenized investment products, including whitelist-based transfer restrictions, on-chain operations, Know-Your-Customer (KYC) procedures, and Anti-Money Laundering (AML) controls.

Shinhan stated that the pilot is designed to assess the potential for using Korean won-denominated financial products in global on-chain markets, which are currently dominated by dollar-denominated assets. This initiative follows previous explorations into digital assets by other Shinhan Financial Group affiliates, including Shinhan Card's collaboration with the Solana Foundation on stablecoin payment technology and Shinhan Bank's completion of a stablecoin remittance pilot in July 2023.

Frequently asked questions

The pilot aims to test the issuance, distribution, and compliance of a Korean won-denominated tokenized fund and explore its use in global onchain markets.

The pilot will use a Korean won-denominated ultra-short-term bond fund as the underlying asset.

BlackRock's BUIDL tokenized fund will serve as a benchmark for testing the issuance and distribution processes.

The project will test whitelist-based transfer restrictions, on-chain operations, KYC checks, and AML controls.

What Happens Next

01Test issuance and distribution processes for the tokenized fund.
02Evaluate compliance requirements for tokenized investment products.
03Assess the viability of using won-denominated assets in onchain markets.

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Cadence

How It Developed

Shinhan Asset Management and Plume signed an MOU to develop a tokenized fund proof of concept.
The pilot will use a Korean won-denominated ultra-short-term bond fund as the underlying asset.
BlackRock's BUIDL tokenized fund will serve as a benchmark for testing.
The project will also test compliance requirements, including KYC and AML controls.
Shinhan aims to explore the overseas use of won-denominated products in onchain markets.

Sources

T1
Shinhan Asset Management partners with Plume on tokenized fund pilotShinhan Asset Management and Plume will test a tokenized fund using a Korean won-denominated ultra-short-term bond fund as its underlying asset.Cointelegraph

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