Shinhan Asset Management from South Korea has entered into a memorandum of understanding (MOU) with Plume, a blockchain network focusing on tokenization. The goal is to develop a proof of concept for a Korean won-denominated tokenized fund.
The pilot project will utilize a Shinhan won-denominated ultra-short-term bond fund as its underlying asset. It will also use BlackRock’s BUIDL tokenized fund as a benchmark to test the issuance and distribution process, as announced by Shinhan on Friday.
Additionally, the companies will conduct tests on compliance requirements for tokenized investment products. This includes whitelist-based transfer restrictions, onchain operations, Know-Your-Customer checks, and Anti-Money Laundering controls.
Shinhan aims to explore the use of won-denominated financial products in onchain markets, which have predominantly revolved around dollar-denominated assets.
Earlier this year, Shinhan Financial Group affiliate Shinhan Card partnered with the Solana Foundation to test stablecoin payment technology and investigate non-custodial wallets. In July 2023, another affiliate, Shinhan Bank, successfully completed a stablecoin remittance pilot.