Shinhan Asset Management Signs MOU for 'Tokenized Securities Collaboration' with Plume Network

Proof-of-Concept Collaboration for KRW-Denominated Tokenized Funds

On August 14th, Shinhan Asset Management announced that it had signed a memorandum of understanding (MOU) for a proof-of-concept (PoC) collaboration with Plume Network, a global blockchain network specializing in real-world asset (RWA) tokenization, to conduct a demonstration of KRW-denominated tokenized funds.

This agreement is a technical verification (PoC) project in which a domestic asset management company brings high-quality KRW-based assets to an on-chain funding market that has thus far been predominantly dollar-based, with the goal of directly generating offshore demand for the Korean won.

Although the on-chain funding market has surpassed 300 billion dollars in outstanding stablecoin issuance, the use of KRW-denominated assets remains limited. To explore the potential for overseas use of KRW-denominated financial investment products, Shinhan Asset Management will use its KRW ultra-short bond fund as an underlying asset, while Plume Network will perform a technical proof-of-concept (PoC) to address potential technical issues that could arise when tokenization features are implemented in offshore markets.

Specifically, both companies will benchmark BlackRock's tokenized fund 'BUIDL' model and use Shinhan Asset Management’s KRW ultra-short bond fund as the underlying asset to conduct a comprehensive PoC throughout the entire issuance and distribution process of the tokenized fund. Through this, they will jointly test regulatory compliance requirements such as whitelist-based transfer restrictions required in the global market, on-chain operational structure, Know Your Customer (KYC), and Anti-Money Laundering (AML) systems, as well as verify the feasibility of actually implementing these functions.

Plume Network is a company specializing in tokenization of real-world assets and holds a Transfer Agent license registered with the U.S. Securities and Exchange Commission (SEC). Recently, Plume joined Nasdaq and others as a new member of the 'Digital Assets Solutions Industry Working Group' operated by the U.S. Depository Trust & Clearing Corporation (DTCC), which is establishing industry standards for a tokenization service scheduled for release in October. Alongside more than 100 existing member firms including BlackRock, Goldman Sachs, and J.P. Morgan, Plume also participates in setting U.S. regulatory standards for the industry.

Through this demonstration, Shinhan Asset Management aims to assess the feasibility of applying institutional-grade infrastructure standards to won-denominated assets and to proactively build capabilities related to global tokenized financial investment products.

Lee Seokwon, CEO of Shinhan Asset Management, stated, "Assets based on the U.S. dollar have played a central role in on-chain payment and liquidity infrastructure, but now is the time to build a foundation for bringing international capital into Korea via won-based stablecoins or tokenized securities. To this end, it is necessary to test the effectiveness of whitelist-based transfer restrictions, KYC and AML system functionality, and regulatory compliance in advance."

He continued, "This demonstration is a PoC, fundamentally not intended for actual issuance or distribution. In particular, the PoC is being designed as a fully isolated structure that contractually and technically blocks any participation by domestic residents, and we intend to continue working closely with regulatory authorities and to proceed responsibly going forward."

Chris Yin, CEO of Plume Network, commented, "Until now, RWA tokenization has been focused on dollar-based assets, but demand for global market integration is growing. This collaboration with Shinhan Asset Management, one of Korea's leading asset managers, is a first step in connecting high-quality KRW-denominated assets that comply with regulations to investors worldwide."

This content was produced with the assistance of AI translation services.