Hana Bank has issued South Korea's first digital bond, valued at $100 million, utilizing Euroclear's blockchain for immediate settlement.
Hana Bank pioneers digital bond issuance in South Korea with a $100 million transaction via Euroclear's blockchain.
Hana Bank has made history by issuing a $100 million digital bond on the Euroclear blockchain, achieving same-day settlement. This marks a significant advancement for the South Korean banking industry, as it is the first time a local bank has utilized Euroclear's distributed ledger technology.
The transaction, confirmed by the Yohnap Agency, showcases the efficiency of blockchain in capital markets by allowing immediate settlement, a stark contrast to the traditional three to five business days required for bond settlements. With nearly $500 billion in client assets, Hana Bank is South Korea's second-largest bank.
A representative from Hana Bank noted, "This issuance and the T+0 settlement process are not just about diversifying funding sources; they also signify our commitment to integrating blockchain into capital markets." He emphasized the bank's ongoing efforts to provide innovative funding solutions for global investors.
The digital bond was issued through Euroclear's Digital Financial Market Infrastructure (D-FMI), which streamlines the issuance, registration, and settlement of securities on a distributed ledger, eliminating the need for traditional systems. The bond's allocation and payment were completed on the same day of issuance, demonstrating the potential of blockchain technology to improve operational efficiency.
As South Korea prepares for a comprehensive tokenized securities framework set for rollout in February 2027, this issuance serves as a practical example of how Korean banks can engage with global blockchain settlement systems independently of domestic regulatory changes. Euroclear's D-FMI platform allows institutional investors to trade the bond using their existing accounts, further simplifying the process.
Hana Bank's issuance also involved Standard Chartered as the sole lead manager, utilizing documentation from its existing global medium-term note program. The bank and Euroclear have yet to provide additional comments on the transaction.
