Today, Plume and Shinhan Asset Management announced that they signed a Memorandum of Understanding (MOU) to develop a demonstration of a KRW-denominated tokenized fund. 

This pilot proof of concept (POC) will show how to create offshore demand for the KRW by supplying high-quality KRW-denominated assets to a dollar-heavy on-chain funding market. It marks the first attempt to apply these institutional-grade infrastructure standards to Korean Won assets.

To test the overseas potential of Won-denominated financial investment products, Shinhan Asset Management will provide a fund related to Won ultra-short-term bonds as an underlying asset. Plume will conduct the POC to test out potential technical issues that may arise when incorporating tokenization functions offshore. 

Together, the two will showcase the viability of regulatory alignment across the entire process. From whitelist-based transfer controls, onchain mechanisms, and KYC/AML systems necessary for the global market. 

“While dollar-based assets have traditionally served as onchain payment and liquidity infrastructure, it is now time to bring overseas funds into the domestic market through Korean Won-based stablecoins or tokenized securities. To achieve this, it is necessary to conduct preliminary experiments regarding whitelisting methods, the functionality of KYC and AML, and the feasibility of regulatory compliance. This will serve as a crucial intellectual asset to establish Shinhan Asset Management as a leader in global tokenized financial investment products,” said Lee Seok-won, CEO of Shinhan Asset Management. 

“This demonstration is merely a Proof of Concept (POC) and is not fundamentally based on issuance or distribution.In particular, for this POC, we are designing a completely isolated structure that fundamentally blocks acquisition by domestic residents both contractually and technically. We will continue to communicate closely with regulatory authorities and proceed responsibly,” he added. 

Plume is well suited to provide the infrastructure and regulatory structure for this POC. It holds a U.S. SEC-registered Transfer Agent license. In addition, it recently joined the "Digital Assets Solutions Industry Working Group," operated by the U.S. Depository Trust and Clearing Corporation (DTCC) to establish industry standards for tokenization services. Meanwhile, this POC will be conducted in a 3rd jurisdiction.

Shinhan Asset Management plans to establish itself as a global tokenization financial institution through this pilot project.

"While RWA tokenization has grown around dollar-denominated assets, there is now a significant demand for global market integration." He added, "Cooperation with Shinhan Asset Management, a leading asset management firm in Korea, marks the first step in connecting compliant, high-quality KRW-denominated assets to investors worldwide,” said Chris Yin, CEO and co-founder of Plume.

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