Hana Bank Attracts Treasury Bond Dollar Settlement via ICSD: "First Among Commercial Banks"

Establishing a US Dollar Settlement Process Through FX Transactions

"Significantly Improving Convenience for Foreign Investors"

Hana Bank announced on the 27th that it has settled the purchase and sale of Korean Treasury Bonds in US dollars through an International Central Securities Depository (ICSD).

An ICSD is an institution that enables foreign investors to trade and hold Korean Treasury Bonds without having to open a separate domestic account or undergo complex procedures. Euroclear and Clearstream are the most prominent examples.

A Hana Bank official stated, "This deal is noteworthy as it is the first time among commercial banks that settlement for Treasury Bond trading has been completed in US dollars, thereby enhancing convenience for foreign investors." Ongoing regulatory improvements by the government and related institutions have allowed domestic financial institutions to directly buy, sell, and settle Treasury Bonds with foreign investors through the ICSD.

Since the authorization in January for domestic financial institutions to use ICSD for offshore settlement, Hana Bank has established a process for US dollar settlements via foreign exchange (FX) transactions, in addition to Treasury Bond trading.

A Hana Bank official added, "Settling Treasury Bond transactions in US dollars through ICSD is significant as it greatly improves convenience for foreign investors," and continued, "As Korea’s leading bank specializing in foreign exchange, Hana Bank will take a proactive role in the internationalization of the Korean won, enabling overseas investors to access the Korean market more easily and swiftly."

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