Plume and Shinhan Collaborate to Test KRW Tokenized Fund in Offshore Trial

Collaboration Between Plume and Shinhan

Plume and Shinhan Asset Management have signed a memorandum of understanding on August 14, 2026, to explore the feasibility of a KRW-denominated tokenized fund. This fund will be backed by one of Shinhan’s ultra-short-term won bond funds and is set to be tested exclusively in an offshore environment.

Details of the Proof of Concept

The proof of concept (PoC) will not engage in the actual issuance or distribution of tokens and will entirely exclude Korean residents from participation. This trial aims to evaluate the required technical and compliance frameworks for operating the fund onchain, focusing on aspects such as whitelist controls, Know Your Customer (KYC) checks, Anti-Money Laundering (AML) controls, and other onchain operational mandates.

Regulatory Context and Future Aspirations

The test comes ahead of South Korea’s new token securities framework, which is set to take effect on February 4, 2027. The Financial Services Commission (FSC) recently reported that amendments to the Electronic Registration Act and Financial Investment Services and Capital Markets Act were passed and will permit blockchain technologies to serve as legally recognized registries for securities.

Shinhan’s CEO, Lee Seok-won, emphasized that this initiative is fundamentally not intended for actual issuance or distribution, and the operations will take place within a structure isolated from Korean residents. The goal is to assess if KRW-denominated investment products could potentially enter offshore markets through tokenized frameworks.

Benchmarks and Compliance Standards

The project will benchmark against BlackRock’s BUIDL tokenized fund model while utilizing Shinhan’s ultra-short-term bond fund as the base asset. However, BlackRock’s involvement in this project has not been confirmed. The PoC will simulate the processes of issuance and distribution without creating a live investment product, with no specific details regarding token contracts or investor allocations disclosed.

Next Steps in the Initiative

While no completion date for the PoC has been announced, both firms will proceed with technical tests focused on compliance and operational controls. Future steps may involve decisions regarding regulated issuance, pending compliance with South Korea’s upcoming securities framework.

Plume’s CEO, Chris Yin, characterized the collaboration as an initial step toward connecting compliant KRW assets with global investors, though further details regarding investor bases or distribution channels remain to be clarified. Currently, the agreement stands as an exploratory MOU with no active fund issuance or involvement from any Korean investors.