Shinhan Securities to Launch Tokenized Bond RWA Product in July
Summary
- Shinhan Securities plans to unveil Yield5, a tokenized real-world asset (RWA) product backed by bonds it holds, in July.
- Yield5 targets an annual return of about 5% and includes bonds held by Shinhan Securities, making it a portfolio of relatively stable assets.
- Cases of tokenizing regulated financial institutions' bonds and traditional financial assets into on-chain RWA products are increasing, helping expand the RWA market.
Forecast Trend Report by Period
Shinhan Securities plans to introduce a tokenized real-world asset, or RWA, product backed by bonds it holds. The launch would add bonds from a regulated financial institution to an on-chain investment product, extending efforts to link traditional finance with blockchain.
Dailian reported on June 26 that Kaia Investment Partners, or KIP, an investor in the Kaia ecosystem, is preparing the RWA product Yield5 with Shinhan Securities. The product is due to be unveiled in July.
Yield5 is a tokenized financial product targeting an annual return of about 5%. The portfolio will include bonds held by Shinhan Securities.
KIP previously introduced Yield8, an RWA product targeting an annual return of more than 8%. While Yield8 was built on private credit assets including Indonesian shipping finance, domestic gas station operating funding and financing for Indonesian small and midsize enterprises, Yield5 uses relatively more stable assets and lowers the target return to about 5%.
The industry is watching the use of bonds held by Shinhan Securities as underlying assets for an on-chain product. As more traditional financial assets held by regulated financial institutions are tokenized into blockchain-based investment products, the RWA market is expanding rapidly.
Kyobo Life Insurance recently invested in Libeara, a Singapore tokenization platform backed by KIP, joining the sector. Across the financial industry, attempts to move a range of real and financial assets on-chain, including bonds, real estate and private credit, are continuing.
RWA refers to technology that issues tokens representing real assets such as bonds and real estate, or traditional financial assets, so they can be traded on blockchain networks.
