South Korea's Shinhan Asset Management has signed a Memorandum of Understanding (MOU) with blockchain network Plume, which specializes in tokenization, to develop a demonstration version of a tokenized fund denominated in Korean won.
The pilot project will use Shinhan's ultra-short-term won-denominated bond fund as the underlying asset, with BlackRock's tokenized fund BUIDL serving as a benchmark for testing issuance and distribution, Shinhan said on Friday.
The companies will also test regulatory compliance features for tokenized investment products, including transfers only between whitelisted addresses, on-chain operations, Know Your Customer (KYC) checks, and Anti-Money Laundering (AML) measures.
Shinhan stated that the pilot will validate the use of won-denominated financial products overseas—on on-chain markets that have primarily been built around dollar-denominated assets.
In April, Shinhan Card, part of the Shinhan Financial Group, signed an MOU with the Solana Foundation to test stablecoin payments and explore the use of non-custodial wallets. Another group company, Shinhan Bank, completed a pilot for cross-border stablecoin transfers in July 2023.
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