Hana Bank taps Euroclear blockchain for $100M bond issuance: Report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
South Korea’s Hana Bank has issued a five-year, $100 million digital bond using Euroclear’s blockchain-based platform, marking the first digital bond issuance in South Korea to directly use Euroclear’s blockchain infrastructure. The bond’s issuance, registration, and settlement were completed on a distributed ledger network, reportedly reducing the process duration from three to five business days to the same day.
Why it matters
The use of blockchain technology for bond allocation and payment settlement can significantly shorten processing times and streamline trading. This development connects the bond to Euroclear’s global settlement network, allowing investors to trade the bond through existing accounts and systems, potentially improving market efficiency.
Key context
Euroclear launched its Digital Securities Issuance service in October 2023, having previously settled a €100 million digital bond for the International Bank for Reconstruction and Development, which was listed on the Luxembourg Stock Exchange. This Hana Bank issuance is the first of its kind in South Korea using Euroclear’s blockchain infrastructure.
Key numbers and entities
Hana Bank, Euroclear, World Bank’s lending arm (International Bank for Reconstruction and Development), five-year $100 million digital bond, €100 million ($106 million) previous bond issued by IBRD, launched October 2023.
What remains unclear
Comments from Hana Bank and Euroclear were not available at the time of publication. Further details on the specific blockchain technology used and the identity of investors involved in the bond issuance were not provided.