Hana Bank Uses Euroclear Blockchain for $100 Million Digital Bond Issuance

South Korea's Hana Bank Issues First Euroclear Blockchain Bond

South Korea's Hana Bank has reportedly issued a five-year, $100 million digital bond using Euroclear's blockchain-based platform. The transaction, reported by Yonhap News Agency on Monday, is described as the first digital bond issuance in South Korea to directly use Euroclear's blockchain infrastructure.

The bond's issuance, registration, and settlement were processed on a distributed ledger network. Using the technology for bond allocation and payment settlement reportedly shortened the process from three to five business days to the same day.

Key Points

• Hana Bank issued a five-year, $100 million digital bond via Euroclear's Digital Financial Market Infrastructure.
• The transaction reportedly cut settlement time from three to five business days down to the same day.
• The bond connects to Euroclear's existing global settlement network, allowing investors to trade it through their current accounts and trading systems.
• Euroclear previously launched its Digital Securities Issuance service in October 2023.

What Is Confirmed

According to Yonhap News Agency, Hana Bank used Euroclear's blockchain infrastructure to issue a foreign-currency digital bond worth $100 million with a five-year term. The bond's issuance, registration, and settlement were processed on a distributed ledger. Cointelegraph was unable to reach Hana Bank for comment, and Euroclear had not responded to Cointelegraph's request for comment before publication.

Why This Matters

The use of blockchain technology to process bond settlement in the same day, compared to the traditional three to five business days, demonstrates how distributed ledger systems can speed up financial transactions. The bond's connection to Euroclear's existing global settlement network means investors do not need new accounts or systems to participate.

Euroclear's Previous Digital Bond Work

Euroclear launched its Digital Securities Issuance service in October 2023, settling a 100 million euro ($106 million at the time) digital bond issued by the International Bank for Reconstruction and Development, the lending arm of the World Bank. That three-year bond raised funds for sustainable development and was listed on the Luxembourg Stock Exchange.

What Is Still Unclear

It is unclear whether Hana Bank or Euroclear have officially confirmed the details of this transaction, as neither responded to Cointelegraph's requests for comment before publication. The report relies on Yonhap News Agency as its primary source.

Sources

• Cointelegraph