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South Korea’s Shinhan Asset Management signed a four-party memorandum on Aug. 21 to test a Korean won tokenized fund using the Solana blockchain.
The agreement brings together Shinhan Asset Management, the Solana Foundation, tokenization platform Etherfuse and decentralized exchange Orca. The participants will conduct a proof of concept covering the fund’s issuance and distribution process.
The planned product would invest in short term Korean won bonds and target overseas institutional investors. However, the participants have not announced the fund’s size, expected yield or public launch date.
Shinhan will test the complete tokenized fund process
The proof of concept will examine the steps needed to issue and distribute a regulated tokenized fund. These include know your customer checks, anti-money laundering controls, token issuance and onchain liquidity arrangements.
Shinhan will provide asset management and regulatory expertise. Etherfuse will supply infrastructure for creating and managing the tokenized assets. Orca will help design the liquidity system used to distribute or exchange the fund tokens on Solana.
The Solana Foundation said the model draws from BlackRock’s BUIDL fund, one of the largest tokenized money market products. The comparison refers to the blockchain based distribution model. It does not mean the proposed Shinhan fund will hold the same assets or offer the same legal rights.
BlackRock’s product primarily invests in U.S. Treasury bills, cash and repurchase agreements. By comparison, Shinhan’s test concerns a Korean won product backed by short term domestic bonds.
Solana expands its institutional fund activity in Asia
Solana offers low transaction fees and rapid settlement, which could support frequent subscriptions, redemptions and transfers. However, those technical features do not remove securities registration, custody or investor protection requirements.
The network has already attracted other Asian asset managers. As previously reported, SBI Global Asset Management launched a tokenized Japanese equity fund on Solana in July. That product targets institutional and accredited investors through regulated tokenization platform DigiFT.
Shinhan has also been testing more than one blockchain. On Aug. 14, the asset manager signed a separate agreement with Plume to develop a demonstration for a won-denominated tokenized fund.
The parallel projects suggest Shinhan is examining different technical and distribution models rather than committing exclusively to Solana. Results from the tests could determine which infrastructure the manager uses after South Korea’s regulatory framework becomes effective.
Korea’s 2027 framework will determine any launch
South Korea’s National Assembly passed amendments supporting tokenized securities on Jan. 15. The legislation recognizes distributed ledgers as valid securities registries and permits qualifying investment contract securities to circulate through licensed securities companies.
The Financial Services Commission said issuers will still need to satisfy existing securities registration and disclosure obligations. Unlicensed companies will not be allowed to broker tokenized securities.
The amendments are expected to take effect one year after their promulgation, with implementation anticipated in early 2027. Regulators are preparing account management infrastructure and investor protection rules before the rollout, according to the FSC’s official statement.
As crypto.news reported, South Korean authorities are preparing rules for stocks, bonds and funds alongside a blockchain platform operated for the Korea Securities Depository.
Market forecasts remain uncertain
Solana said the existing tokenized real world asset market was worth about $36 billion. The announcement also cited a Boston Consulting Group projection suggesting the sector could reach as much as $30 trillion by 2030.
That projection should be treated as a forecast rather than an expected outcome. BCG’s more recent middle scenario estimates tokenized real world assets could reach $14 trillion by 2030 and $55 trillion by 2035. Its faster growth scenario places the market as high as $88 trillion by 2035.
Current adoption remains much smaller. In related coverage, publicly visible onchain assets grew to approximately $30 billion by mid-2026, led by private credit and tokenized government debt.
The next stage will involve completing the proof of concept and aligning the fund structure with Korea’s final rules. Any commercial launch will depend on regulatory approval, operational testing and demand from eligible overseas institutions.
Source: cryptonews.net