Hana Bank Issues $100M Digital Bond on Euroclear Blockchain in South Korea First

Hana Bank has issued a five-year, $100 million digital bond using Euroclear's blockchain-based platform, according to a Monday report from Yonhap News Agency. The South Korean bank utilized Euroclear's Digital Financial Market Infrastructure (D-MFI) to issue the foreign-currency bond, marking what the report described as the first digital bond issuance in South Korea to directly leverage Euroclear's distributed ledger technology.

The transaction reportedly processed bond issuance, registration, and settlement on a blockchain network, dramatically reducing the settlement timeline from the traditional three to five business days to same-day completion. The digital bond also integrates with Euroclear's existing global settlement network, enabling investors to trade the security through their current accounts and trading infrastructure without requiring new systems.

Euroclear launched its Digital Securities Issuance service in October 2023, initially settling a 100 million euro digital bond issued by the International Bank for Reconstruction and Development, the World Bank's lending arm. That three-year bond supported sustainable development initiatives and was listed on the Luxembourg Stock Exchange. Euroclear has continued expanding its blockchain-based services in Asia, including a strategic investment in Singapore-based Marketnode. Cointelegraph was unable to reach Hana Bank for comment, while Euroclear had not responded to requests as of publication.