TechFlow reported on June 11, citing the Seoul Economic Daily, that South Korea’s KB Kookmin Bank announced the issuance of a blockchain-based digital bond worth $100 million in the Hong Kong market. According to the announcement, the transaction marks the first time South Korea’s banking industry has applied blockchain technology to an actual foreign-currency financing operation.
Settlement shortened from five business days to three
The digital bond issuance reduced the settlement cycle from the traditional five business days to three business days. The report said the shorter cycle helps simplify the issuance and settlement process while reducing the risk of settlement default. The bond is a two-year U.S. dollar digital bond and was issued through a private placement.
HSBC acted as the sole bookrunner for the deal. The issuance process was completed through Orion, HSBC’s digital asset platform. The main disclosed details of the transaction include the Hong Kong issuance venue, the $100 million size, the two-year maturity, the shorter settlement period, and the use of HSBC’s digital asset infrastructure.