Shinhan Asset Management, Plume to pilot tokenized fund in South Korea

Shinhan Asset Management and Plume will conduct a pilot program to tokenize a South Korean won-denominated ultra-short-term bond fund, marking a step toward blockchain-based asset management in the country.

The pilot, announced on Tuesday, will use Plume’s blockchain infrastructure to issue and manage the fund’s units as digital tokens. Shinhan Asset Management will serve as the asset manager, while Plume will provide the tokenization platform.

The underlying fund is an ultra-short-term bond product, typically characterized by low volatility and high liquidity. Tokenization could enhance settlement efficiency and transparency, though regulatory compliance and operational risks remain key considerations for the pilot.

South Korea has shown growing interest in tokenized assets, with regulators recently introducing frameworks to support digital asset innovation. The pilot is expected to run for several months, with results to be evaluated for broader application.

Plume, a Singapore-based fintech company, has previously worked with financial institutions on tokenization projects. Shinhan Asset Management, a unit of South Korea’s Shinhan Financial Group, manages assets exceeding 200 trillion won ($150 billion).