Shinhan taps Solana for Korean won tokenized fund

Shinhan Asset Management, one of South Korea's largest asset managers, signed a four-party memorandum of understanding on Aug. 21 to test a Korean won tokenized fund on the Solana blockchain, according to crypto.news. The agreement brings together Shinhan, the Solana Foundation, tokenization platform Etherfuse and decentralized exchange Orca for a proof of concept covering the fund's issuance and distribution. The planned product would invest in short-term Korean won bonds and target overseas institutional investors. The participants have not announced the fund's size, expected yield or public launch date. The test will examine know-your-customer checks, anti-money-laundering controls, token issuance and on-chain liquidity arrangements. The Solana Foundation said the model draws from BlackRock's BUIDL fund, though the comparison refers to the blockchain-based distribution model, not the underlying assets or legal rights.

Background

The Shinhan memorandum lands amid a broader push by Asian asset managers into tokenized funds on public blockchains. According to crypto.news, SBI Global Asset Management launched a tokenized Japanese equity fund on Solana in July, targeting institutional and accredited investors through regulated tokenization platform DigiFT. Shinhan itself has been testing more than one blockchain: on Aug. 14 it signed a separate agreement with Plume to develop a demonstration for a won-denominated tokenized fund. Those parallel projects suggest Shinhan is examining different technical and distribution models rather than committing exclusively to Solana, the report said. The regulatory backdrop is also shifting. South Korea's National Assembly passed amendments supporting tokenized securities on Jan. 15, recognizing distributed ledgers as valid securities registries and permitting qualifying investment contract securities to circulate through licensed securities companies. The Financial Services Commission said issuers will still need to satisfy existing securities registration and disclosure obligations, and unlicensed companies will not be allowed to broker tokenized securities. The amendments are expected to take effect one year after promulgation, with implementation anticipated in early 2027. Regulators are preparing account management infrastructure and investor protection rules before the rollout, according to the FSC's official statement. Solana said the existing tokenized real-world asset market was worth about $36 billion, and the announcement cited a Boston Consulting Group projection suggesting the sector could reach as much as $30 trillion.

What happened

The four-party memorandum was signed on Aug. 21, crypto.news reported. It brings together Shinhan Asset Management, the Solana Foundation, Etherfuse and Orca to test a Korean won tokenized fund on Solana. The participants will conduct a proof of concept covering the fund's issuance and distribution process. The planned product would invest in short-term Korean won bonds and target overseas institutional investors. The participants have not announced the fund's size, expected yield or public launch date. The proof of concept will examine the steps needed to issue and distribute a regulated tokenized fund, including know-your-customer checks, anti-money-laundering controls, token issuance and on-chain liquidity arrangements. Under the division of roles described by crypto.news, Shinhan will provide asset management and regulatory expertise; Etherfuse will supply infrastructure for creating and managing the tokenized assets; and Orca will help design the liquidity system used to distribute or exchange the fund tokens on Solana. The Solana Foundation said the model draws from BlackRock's BUIDL fund, one of the largest tokenized money market products. The comparison refers to the blockchain-based distribution model and does not mean the proposed Shinhan fund will hold the same assets or offer the same legal rights. BlackRock's product primarily invests in U.S. Treasury bills, cash and repurchase agreements, while Shinhan's test concerns a Korean won product backed by short-term domestic bonds. Solana offers low transaction fees and rapid settlement, which could support frequent subscriptions, redemptions and transfers, though those technical features do not remove securities registration, custody or investor protection requirements.

Market impact

The sources provide no price, flow or valuation figures for the Shinhan fund itself: the participants have not announced the fund's size, expected yield or public launch date. The only market-level numbers in the report are contextual. Solana said the existing tokenized real-world asset market was worth about $36 billion. The announcement also cited a Boston Consulting Group projection suggesting the sector could reach as much as $30 trillion. The report notes that Solana has already attracted other Asian asset managers, citing SBI Global Asset Management's tokenized Japanese equity fund launched on Solana in July, which targets institutional and accredited investors through regulated tokenization platform DigiFT. No trading volumes, token prices or capital flows tied to the Shinhan memorandum are disclosed. The report also does not quantify the Korean won bond market or the potential size of overseas institutional demand. On the regulatory side, the report gives dates rather than financial figures: the National Assembly passed tokenized-securities amendments on Jan. 15, and implementation is anticipated in early 2027, one year after promulgation. Any assessment of market impact therefore rests on the stated $36 billion current market size and the BCG projection, not on disclosed Shinhan fund metrics.

Why it matters

The test matters because it pairs a regulated Korean asset manager with public blockchain infrastructure at a moment when South Korea is building the legal plumbing for tokenized securities. The Jan. 15 amendments recognize distributed ledgers as valid securities registries and permit qualifying investment contract securities to circulate through licensed securities companies, while the FSC says issuers must still satisfy existing registration and disclosure obligations and unlicensed companies cannot broker tokenized securities. Implementation is anticipated in early 2027, and regulators are preparing account management infrastructure and investor protection rules. Shinhan's proof of concept is designed to examine exactly the operational steps a regulated tokenized fund needs: KYC, AML, token issuance and on-chain liquidity. The Solana Foundation's reference to BlackRock's BUIDL fund signals that the distribution model, not the asset base, is the object of imitation; the Shinhan product would hold short-term Korean won bonds, not U.S. Treasury bills, cash and repurchase agreements. The parallel Plume agreement of Aug. 14 suggests Shinhan is comparing technical and distribution models rather than committing exclusively to Solana, and the report says results from the tests could determine which infrastructure the manager uses after the regulatory framework becomes effective.