South Korea’s Hana Bank has reportedly issued a five-year, $100 million digital bond through Euroclear’s blockchain-based infrastructure, according to Yonhap News Agency. The report said the foreign-currency bond was issued through Euroclear’s Digital Financial Market Infrastructure and described the deal as the first digital bond issuance in South Korea to directly use Euroclear’s blockchain network.
Yonhap said the bond’s issuance, registration and settlement were handled on a distributed ledger network. By using the system for allocation and payment settlement, the process was reportedly reduced from three to five business days to same-day completion. The bond also links into Euroclear’s existing global settlement network, which allows investors to trade it through their current accounts and trading systems.
Cointelegraph said it could not reach Hana Bank for comment, and Euroclear had not responded before publication. Euroclear launched its Digital Securities Issuance service in October 2023, when it settled a 100 million euro digital bond issued by the World Bank’s lending arm, the International Bank for Reconstruction and Development. That three-year bond was used to raise funds for sustainable development and was listed on the Luxembourg Stock Exchange.
South Korea’s Hana Bank has reportedly issued a five-year, $100 million digital bond using Euroclear’s blockchain-based platform.
Yonhap News Agency reported Monday that the bank used Euroclear’s Digital Financial Market Infrastructure to issue the foreign-currency bond. Yonhap described the transaction as the first digital bond issuance in South Korea to directly use Euroclear’s blockchain infrastructure.
Issuance, registration and settlement ran on a distributed ledger
According to Yonhap, the bond’s issuance, registration and settlement were processed on a distributed ledger network. The report said using the technology for bond allocation and payment settlement cut the timeline from three to five business days to the same day.
Bond connects to Euroclear’s existing settlement network
Yonhap also reported that the bond is linked to Euroclear’s existing global settlement network, allowing investors to trade it through their existing accounts and trading systems.
No comment before publication
Cointelegraph said it was unable to reach Hana Bank for comment. Euroclear had also not responded to Cointelegraph’s request for comment before publication.
Euroclear launched the service in 2023
Euroclear launched its Digital Securities Issuance service in October 2023. At that time, it settled a 100 million euro digital bond issued by the World Bank’s lending arm, the International Bank for Reconstruction and Development, equal to about $106 million at the time.
That three-year bond raised funds for sustainable development and was listed on the Luxembourg Stock Exchange.
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