South Korea’s Shinhan Asset Management has signed a memorandum of understanding (MOU) with tokenization-focused blockchain network Plume to develop a proof of concept for a Korean won-denominated tokenized fund, the company announced on Friday.
What the pilot will test
The proof-of-concept project will use a Shinhan won-denominated ultra-short-term bond fund as its underlying asset. BlackRock’s BUIDL tokenized fund has been selected as a benchmark to evaluate the issuance and distribution process, according to Shinhan.
Beyond fund mechanics, the two companies will examine compliance requirements specific to tokenized investment products. That includes whitelist-based transfer restrictions, onchain operations, Know-Your-Customer checks, and Anti-Money Laundering controls.
Pushing won-denominated assets onchain
Shinhan stated the pilot is specifically designed to test the overseas use of won-denominated financial products within onchain markets that have so far been built predominantly around dollar-denominated assets. The experiment is framed as an attempt to broaden the currency diversity of tokenized real-world asset infrastructure.
Broader Shinhan Financial Group blockchain activity
The Plume collaboration is not the first blockchain initiative from within the Shinhan Financial Group. In April, group affiliate Shinhan Card signed an MOU with the Solana Foundation to test stablecoin payment technology and explore non-custodial wallet usage. Separately, Shinhan Bank completed a stablecoin remittance pilot in July 2023.
