Shinhan Asset Management and Plume have signed a memorandum of understanding to develop a proof-of-concept for a Korean won-denominated tokenized fund. The initiative, announced on August 14, 2026, will examine how a traditional fixed-income product can operate on blockchain infrastructure in an offshore setting.

The underlying asset will be one of Shinhan’s won ultra-short-term bond funds. The project will reference the operating and compliance model of BlackRock’s BUIDL tokenized fund while adapting it to KRW assets. No commercial product will be launched, and the exercise remains strictly experimental.

Offshore Structure and Scope

The proof of concept will take place exclusively in a third jurisdiction outside South Korea. An isolated structure will prevent access by Korean residents through both contractual terms and technical controls. Shinhan has stated that the trial is not intended for actual issuance or distribution of tokens.

Participants will evaluate the full process of bringing a fund structure on-chain. Specific tests will cover whitelist-based transfer restrictions, know-your-customer procedures, anti-money-laundering controls, and on-chain operational requirements. The goal is to determine the technical and compliance conditions needed for potential future offshore distribution of won-denominated investment products.

Shinhan Asset Management manages KRW 133.6 trillion in assets and ranks among South Korea’s largest asset managers. The collaboration seeks to explore whether high-quality KRW assets can attract demand in on-chain markets that have so far centered mainly on dollar-denominated instruments.

Regulatory Context and Timing

The pilot occurs ahead of South Korea’s forthcoming tokenized securities framework. Amendments to the Electronic Registration Act and the Financial Investment Services and Capital Markets Act passed the National Assembly on January 15 and are scheduled to take effect on February 4, 2027. The new rules will recognize blockchain-based ledgers as legal securities registries while subjecting tokenized securities to existing capital-markets regulations.

By conducting the test offshore and excluding domestic investors, the parties are positioning the exercise as preparation rather than a domestic market launch. Any later commercial product would need to comply with the post-2027 regulatory regime.

Plume’s Role and Infrastructure

Plume, an institutional-focused platform for real-world assets, will supply the blockchain infrastructure and related compliance tooling. The company operates Kimber Transfer Agency, which filed for SEC transfer-agent registration in August 2025 and received acceptance the following month. This registration supports official ownership records for tokenized securities in the United States.

Plume has also joined the Depository Trust & Clearing Corporation’s Digital Assets Solutions Industry Working Group, which is developing operating standards for tokenization services. Membership does not imply selection of Plume’s chain for any production DTCC service.

The memorandum of understanding records mutual intent to cooperate and does not create any obligation to proceed to a commercial issuance. No token contract details, issuance size, investor allocations, or completion timeline have been disclosed. Future steps will depend on the outcomes of the technical and compliance tests currently planned.

Shinhan Financial Group affiliates have previously explored related technologies. Shinhan Card signed an agreement with the Solana Foundation in April to examine stablecoin payments, while Shinhan Bank completed a stablecoin remittance pilot in 2023. The current project with Plume focuses specifically on tokenized fund structures rather than payments or remittances.

As the proof of concept advances, the parties will assess whether the tested framework can support compliant access to KRW assets by offshore participants. Any decision to move beyond the experimental stage remains subject to regulatory developments in both South Korea and the chosen offshore jurisdiction.