[Getty Images Bank]
[Getty Images Bank]

Shinhan Asset Management has teamed up with a group of global blockchain firms to validate the full issuance and distribution cycle of a won-denominated tokenized fund, staking an early claim in the digital financial market.

The Seoul-based asset manager announced Friday it had signed a four-way MOU with the Solana Foundation, a global blockchain network; Etherfuse, a regulatory-compliant tokenization issuance platform; and Orca, an on-chain liquidity infrastructure provider — to conduct a proof of concept covering every stage of issuing and distributing a won-denominated tokenized fund.

The agreement marks the first step toward applying to won-denominated assets the digital product model pioneered by BlackRock with its tokenized fund BUIDL. Under the framework, the four parties will jointly validate the entire process — from issuance to distribution — based on a structure in which overseas institutional investors purchase a won-denominated ultra-short-term bond fund managed by Shinhan Asset Management and receive it in token form.

The pilot will comprehensively test a know-your-customer and anti-money-laundering framework compliant with domestic and international law, blockchain operating methods, adherence to foreign exchange transaction regulations, and on-chain liquidity design.

Major institutions including Boston Consulting Group project the real-world asset tokenization market could grow to as much as $30 trillion by 2030. Amid that outlook, Shinhan Asset Management plans to build issuance and management capabilities in-house ahead of the anticipated domestic STO legislation.

"We will demonstrate the issuance and distribution structure for won-denominated digital products alongside world-class partners," said Lee Seok-won, chief executive of Shinhan Asset Management. "Our goal is to lead the market for managing won-based digital financial products by proactively securing verified capabilities that can be put into operation immediately once the regulatory regime takes effect."

Shinhan Asset Management is among the asset managers that have seen the sharpest growth in net assets recently. Its Shinhan US Representative Index Fund series — which invests in the S&P 500 and the NASDAQ 100 — recently surpassed 1 trillion won ($713 million) in net assets. The series comprises the Shinhan US S&P 500 Index Fund and the Shinhan US NASDAQ 100 Index Fund, each available in a currency-hedged version that limits exchange rate exposure and an unhedged version that retains it.


th5@heraldcorp.com