South Korea's second-largest bank issues a $100 million foreign-currency bond, achieving same-day settlement through blockchain technology.
By Olivier Acuna|Edited by Omkar GodboleUpdated 6 minutes agoPublished 10 minutes ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Hana Bank completes South Korea's inaugural digital bond issuance. (Hana Bank/Press)SummaryShow- Hana Bank has successfully issued a $100 million digital bond utilizing Euroclear’s blockchain, marking a significant milestone for the Korean banking sector.
- This transaction enabled same-day settlement, a stark contrast to the traditional three to five business days.
- The issuance paves the way for Korean banks to leverage global blockchain infrastructure as they gear up for a comprehensive tokenized-securities framework in February 2027.
Hana Bank has announced the issuance of a $100 million digital bond through Euroclear’s blockchain platform, with the transaction settling on the same day, as reported by the Yohnap Agency.
This marks the first instance of a South Korean financial institution directly utilizing the distributed ledger technology of Euroclear, which is based in Brussels and ranks among the largest central securities depositories (CSDs) globally. Hana Bank is recognized as the second-largest bank in South Korea, managing nearly $500 billion in client assets.
The transaction exemplifies the potential for tokenization to enhance the efficiency of capital markets, successfully replacing the traditional multi-day bond settlement process with immediate settlement on a distributed ledger.
"The issuance of the $100 million digital bond and the implementation of T+0 settlement are not only about diversifying our funding sources, but they also integrate blockchain technology into our capital markets," stated a Hana Bank representative, as reported by the Korea Herald. "We will continue to pursue advanced infrastructure and innovative funding solutions that cater to the needs of global investors."
Both Hana Bank and Euroclear have yet to respond to CoinDesk's request for further information.
The digital bond was issued via Euroclear's Digital Financial Market Infrastructure (D-FMI), which facilitates the issuance, registration, and settlement of securities on a distributed ledger, eliminating the need for traditional systems. The bond allocations and payments were executed on the issuance date, which typically takes three to five business days to settle in conventional practices.
As South Korea accelerates its efforts to establish a tokenized securities infrastructure, a full rollout is targeted for February 2027, according to the Financial Services Commission (FSC). Hana Bank's bond issuance serves as a live demonstration that Korean banks can directly engage with established global blockchain settlement systems without awaiting domestic regulatory adjustments.
The D-FMI platform is designed to integrate with Euroclear's existing settlement network, allowing institutional investors to purchase and trade the bond using their current Euroclear accounts without the need for additional systems. Hana Bank utilized documentation from its existing global medium-term note program, with Standard Chartered acting as the sole lead manager.