Plume and Shinhan Asset Management test tokenised fund on blockchain

Blockchain platform Plume and South Korea’s Shinhan Asset Management are joining forces for a proof of concept around a tokenised investment fund. The fund will be priced in Korean Won and uses ultra-short-term bonds as the underlying product. With the project, the parties want to test whether Won products can be brought onto a blockchain.

In brief:

• Plume and Shinhan Asset Management sign an MOU for a proof of concept of a Won-based tokenised fund.
• The fund uses ultra-short-term Korean Won bonds as the underlying value.
• The test takes place in a third country and excludes Korean residents both technically and contractually.

Collaboration between Plume and major Korean asset manager

Shinhan Asset Management manages over 133.6 trillion Korean Won in assets, making it one of South Korea’s largest asset managers. The collaboration with Plume is focused on developing a proof of concept for a tokenised fund denominated in Won and based on bonds with a very short maturity.

The two parties are recording the agreements in an MOU, a letter of intent that describes the framework of the collaboration. It is a step that fits within the broader trend in which traditional financial institutions are increasingly exploring tokenised products as a way to make investments more accessible and efficient.

Test outside South Korea for legal reasons

The proof of concept is being carried out in a third country, so not on Korean territory. There will be no official issuance or distribution of the fund. The structure has been set up in such a way that Korean residents have no access to it, either contractually or technically. In doing so, the parties take into account local laws and regulations, which have recently become stricter around crypto and cross-border transactions.

The aim of the test is to map out the technical and regulatory requirements for bringing Won-based products onto the blockchain. It is therefore purely an experimental phase without any commercial offering. Whether and when a full product will follow has not yet been announced.