What to know:
- Shinhan tests a won-denominated tokenized bond fund on Solana for overseas investors.
- Etherfuse and Orca will support fund tokenization, management, and onchain liquidity.
- New tokenized securities rules in South Korea are expected to take effect in early 2027.
Shinhan Asset Management is testing a Korean won-denominated tokenized fund on the Solana blockchain as South Korea prepares rules for tokenized securities. The pilot targets overseas institutional investors and covers the product’s issuance and onchain distribution processes.
The asset manager signed a four-party memorandum of understanding on August 21. Its partners are the Solana Foundation, Etherfuse, and decentralized exchange Orca.
The proposed investment product would be backed by an ultra-short-term Korean won bond fund. Shinhan manages that underlying portfolio and will provide its asset-management experience.
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How Will Shinhan Test Its Tokenized Fund on Solana?
Proof of concept will review the complete tokenization process, including investor onboarding, issuance of the fund, and distribution on-chain.
Participants will also analyze the procedure of putting a regulated investment instrument on-chain, which will include KYC, AML, and blockchain procedures.
A foreign exchange requirement will be another area of assessment. The group will also analyze the design of onchain liquidity on Solana.
While Shinhan brings in regulatory expertise along with their investment expertise, Etherfuse will contribute the infrastructure required for the tokenization process of the fund.
Orca’s efforts will be concentrated around the liquidity structure for the proposed asset. The efforts of Orca will facilitate the intended on-chain distribution of the product.
The agreement does not mark a public launch or investor offering. The parties have not disclosed the fund’s size, expected returns, or launch date.
What Separates Shinhan’s Fund From BUIDL?
For now, the project continues to be limited to testing and infrastructure preparation. Shinhan will determine the securities that can be used within the forthcoming legal framework in South Korea.
Tests will be ongoing as the country sets up its tokenized securities system. Issuance and distribution should be conducted in compliance with regulations.
The model is compared to the BlackRock BUIDL, which distributes conventional financial instruments via blockchain technology infrastructure. Nevertheless, the portfolios consist of different underlying instruments.
The BUIDL program is centered around tokens tied to US Treasuries. The approach developed by Shinhan uses Korean won-denominated short-term bonds.
The collaboration with Solana is one of the initiatives that fall under Shinhan’s assessment of blockchain-based infrastructure. Specifically, the asset manager signed a tokenized fund deal with Plume on August 14.
Why Is Shinhan Testing Solana and Plume?
Plume is another example of a pilot involving a Korean won-denominated tokenized investment fund. The two projects operate separately to allow Shinhan to test various technical solutions prior to the tokenized securities launch in South Korea.
Together, the projects show that Shinhan is testing different blockchain and distribution models. The company has not committed its future products to a single network.
The amended regulations are likely to take effect in early 2027. Regulators are preparing market infrastructure and investor-protection measures before the planned rollout.
The new system may offer a clear path to regulated tokenization for asset managers. Until then, Shinhan will continue its technical preparations with Solana and other partners.
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