South Koreas Shinhan Asset Management 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 pilot project will use a Shinhan won-denominated ultra-short-term bond fund as its underlying asset and BlackRocks BUIDL tokenized fund as a benchmark to test the issuance and distribution process, Shinhan said on Friday.
The companies will also test compliance requirements for tokenized investment products, including whitelist-based transfer restrictions, onchain operations, Know-Your-Customer checks and Anti-Money Laundering controls.
Shinhan said the pilot is intended to test the overseas use of won-denominated financial products in onchain markets that have largely developed around dollar-denominated assets.
In April, fellow Shinhan Financial Group affiliate Shinhan Card signed an MOU with the Solana Foundation to test stablecoin payment technology and explore the use of non-custodial wallets. Another group affiliate, Shinhan Bank, completed a stablecoin remittance pilot in July 2023.
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