Shinhan Asset Management Launches Tokenized Fund Pilot with Plume
Collaboration to test a Korean won-denominated tokenized fund.
1Tokenized Fund Pilot Project
Shinhan Asset Management has signed a memorandum of understanding with blockchain-based tokenization network Plume. The collaboration aims to develop a proof of concept for a Korean won-denominated tokenized fund. The pilot will use Shinhan’s ultra-short-term bond fund as the underlying asset. BlackRock’s BUIDL tokenized fund will serve as a benchmark in the process.
2Technical and Compliance Testing
The project will test compliance requirements for tokenized investment products. These tests include whitelist-based transfer restrictions, onchain operations, KYC checks, and AML controls. Shinhan aims to evaluate the use of won-denominated financial products in onchain markets through these steps.
3Shinhan's Blockchain Initiatives
Shinhan Card, another affiliate of Shinhan Financial Group, signed an agreement with the Solana Foundation in April to test stablecoin payment technology. Shinhan Bank completed a stablecoin remittance pilot in July 2023. The group continues to invest in blockchain technology.
4Development of Onchain Markets
Shinhan aims to test the use of won-denominated financial products in onchain markets through the pilot. These markets have largely developed around dollar-denominated assets so far. The project seeks to strengthen the role of the Korean won in the global onchain financial ecosystem.
5The Role of Tokenization in Finance
Tokenization enables the creation of digital representations of traditional financial assets on the blockchain. This technology helps assets trade more efficiently and increases global access. Shinhan and Plume’s project is a significant step in testing innovations in this field.
6South Korea's Crypto Policy
While tightening regulations on crypto assets, South Korea also lifted its corporate crypto ban. Shinhan’s tokenized fund project could contribute to the country’s advancements in blockchain and digital assets. Korea is working to strengthen its leadership in financial technologies.
7BlackRock's Influence
Shinhan will use BlackRock’s BUIDL tokenized fund as a reference in the pilot. BlackRock, a major player in traditional finance, is also making an impact in tokenization. This collaboration reflects Shinhan’s efforts to align with global financial trends.
8The Future of Tokenized Funds
Tokenized funds are a key innovation bridging traditional finance and blockchain technology. Shinhan and Plume’s project provides a critical testing ground to evaluate this potential. If successful, it could accelerate global adoption of won-denominated tokenized products.