Plume and Shinhan Asset Management Launch Tokenized Fund Trial Partnership
A collaborative pilot program between Plume and Shinhan Asset Management will explore tokenization using an ultra-short-term bond fund denominated in Korean won as the base asset.
Shinhan Asset Management, a major financial institution in South Korea, has entered into a memorandum of understanding (MOU) with Plume, a blockchain network specializing in tokenization, to create a proof of concept for a tokenized fund denominated in Korean won.
According to Shinhan's announcement on Friday, the experimental initiative will utilize an ultra-short-term bond fund denominated in won from Shinhan as the base asset, while using BlackRock's BUIDL tokenized fund as a reference point to evaluate the issuance and distribution mechanisms.
The partnership will additionally evaluate compliance frameworks necessary for tokenized investment vehicles, including transfer restrictions based on whitelists, operations conducted onchain, Know-Your-Customer verification processes and Anti-Money Laundering safeguards.
According to Shinhan, the experimental program aims to evaluate the international application of financial products denominated in won within onchain marketplaces that have predominantly evolved around assets denominated in dollars.
Back in April, Shinhan Card, another affiliate within the Shinhan Financial Group, entered into an MOU with the Solana Foundation to evaluate stablecoin payment technology and investigate the implementation of non-custodial wallets. Shinhan Bank, yet another affiliate of the group, successfully finalized a stablecoin remittance pilot in July 2023.