Shinhan Asset Management is testing a Korean won-denominated tokenized investment fund on the Solana blockchain as South Korea prepares to introduce a regulated framework for tokenized securities.
The asset manager signed a four-party memorandum of understanding on August 21 with the Solana Foundation, tokenization platform Etherfuse and decentralized exchange Orca. The agreement covers a proof of concept for the issuance and distribution of a tokenized fund aimed at overseas institutional investors.
The proposed product would be backed by an ultra-short-term Korean won bond fund managed by Shinhan Asset Management. The companies will use the pilot to examine how the fund could move through the full tokenization process, from investor onboarding to issuance and onchain distribution.
Testing the tokenized fund
The proof of concept will focus on the operational steps required to put a regulated investment product onchain. The partners will examine know-your-customer (KYC) and anti-money laundering (AML) procedures, blockchain operations, foreign-exchange requirements and the design of onchain liquidity.
Shinhan Asset Management will contribute its asset-management and regulatory expertise. Etherfuse will provide the infrastructure for tokenizing and managing the fund, while Orca will work on the liquidity structure for the tokenized product on Solana.
The model draws some comparison with BlackRock’s BUIDL, which showed how traditional financial assets could be represented and distributed through blockchain infrastructure.
Shinhan’s proposed product would have a different underlying portfolio, however, as it would focus on Korean won-denominated short-term bonds rather than the U.S. Treasury-focused assets held by BUIDL.
Still a proof of concept
The agreement does not represent a public launch of the fund. The four parties have not disclosed the proposed fund’s size, expected returns or a timetable for offering the product to investors. The current work is limited to technical verification and infrastructure preparation.
That also means there is no indication that retail investors have invested money into the proposed fund at this stage. The project is designed to determine whether the issuance, compliance and distribution processes can operate as intended before any potential commercial rollout.
Shinhan said it plans to identify products that could eventually be issued and distributed within the applicable legal framework. Until South Korea’s tokenized securities system is implemented, its activities will remain focused on testing and preparation.
Shinhan explores multiple networks
The Solana partnership is part of Shinhan’s broader effort to evaluate blockchain infrastructure for tokenized financial products.
On August 14, the asset manager signed a separate agreement with Plume to develop a demonstration involving a Korean won-denominated tokenized fund.
The two projects suggest that Shinhan is assessing different blockchain and distribution models rather than relying on a single network. The results of these experiments could help determine which infrastructure is best suited for future tokenized investment products.
Solana’s relatively low transaction costs and fast settlement could support activities such as fund subscriptions, redemptions and transfers. Those technical advantages, however, do not replace requirements around securities regulation, custody, investor protection or foreign-exchange compliance.
Korea prepares for tokenized securities
The experiments come as South Korea moves closer to establishing a legal framework for tokenized securities.
The National Assembly passed amendments supporting the market in January. The changes recognize distributed ledger technology as a valid method for maintaining securities records and allow qualifying investment contract securities to circulate through licensed securities firms.
The amended rules are expected to take effect in early 2027 following the necessary preparations. Regulators are also working on infrastructure and investor-protection measures ahead of the rollout.
For asset managers such as Shinhan, the upcoming framework could provide a clearer route for turning blockchain-based investment products into regulated offerings.
South Korea is also planning a 2027 pilot to connect tokenized government bonds with the Bank of Korea’s wholesale CBDC platform. The plan was included in the Ministry of Economy and Finance’s 2026 Second Half Economic Growth Strategy.
Against that backdrop, the current PoC allows Shinhan to test its operational model before the new system takes effect while keeping the project within the limits of the existing regulatory environment.
The next step is to complete the test. Any launch will depend on regulation and investor demand.
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