Hana Bank Sets New Benchmark with Same-Day Settlement of $100M Digital Bond
Hana Bank has made history by issuing a $100 million foreign-currency digital bond that settled on the same day, a first for any Korean foreign-currency bond. The transaction was facilitated through Euroclear's Digital Financial Market Infrastructure platform, which uses distributed ledger technology to coordinate issuance, settlement, and custody simultaneously.
The standard bond settlement cycle typically runs between three and five business days, but Hana Bank's use of D-FMI shaved off that time, allowing for same-day settlement. This achievement is significant because it reduces counterparty risk and freezes capital for a shorter period.
Euroclear's Digital Financial Market Infrastructure platform launched in 2023 with an inaugural digital note from the World Bank, and has since facilitated over €1 billion in digital native note issuances across various transactions. Hana Bank's transaction marks the first time a Korean commercial bank has tapped D-FMI for a foreign-currency deal.