Shinhan Partners with Solana and Others on Tokenized Fund Issuance

Shinhan Asset Management, one of South Korea's largest financial institutions, has partnered with the Solana Foundation, Etherfuse, and Orca to explore tokenized fund issuance.

The four-party memorandum of understanding aims to create a proof-of-concept for issuing and distributing a Korean won-denominated tokenized fund.

Shinhan modeled this initiative after BlackRock's BUIDL tokenized fund. The structure involves overseas institutional investors purchasing an ultra-short-term bond fund managed by Shinhan, which would then be issued in tokenized form.

The partnership comes after South Korea passed amendments establishing a legal framework for security token offerings (STO) in January. This paved the way for blockchain-based issuance and trading of tokenized securities in the country.