Hana Bank Breaks Ground with $100M Blockchain Bond Issuance

South Korea's Hana Bank has made history in the world of finance by issuing a $100 million digital bond using Euroclear's blockchain-based platform. According to Yonhap News Agency, this is the first digital bond issuance in South Korea that directly utilizes Euroclear's blockchain infrastructure.

The five-year foreign-currency bond was processed on a distributed ledger network, which reportedly shortened the allocation and payment settlement process from three to five business days to just one day. This is made possible by connecting to Euroclear's existing global settlement network, allowing investors to trade the bond through their existing accounts and systems.

Eurolclear launched its Digital Securities Issuance service in October 2023, settling a €100 million digital bond issued by the World Bank's lending arm. This bond raised funds for sustainable development and was listed on the Luxembourg Stock Exchange.