Hana Bank Settles $100m Digital Bond in Zero Days
Korea's first blockchain bond issuance cuts settlement time from days to hours via Euroclear.
Key points
- Hana Bank issued a $100 million five-year digital bond with T+0 settlement.
- The transaction was the first direct use of Euroclear's blockchain by a Korean bank.
- Settlement time dropped from three to five days to zero days via distributed ledger.
Hana Bank settled a $100 million digital bond on the same day it issued the security. This marks the first time a Korean bank used a blockchain platform for this specific market transaction.
The five-year instrument settled in zero days instead of the usual three to five business days. The bank utilized Euroclear's distributed ledger to process the issuance and registration simultaneously.
Blockchain infrastructure accelerates payment cycles
Standard foreign currency bonds typically require three to five days for final settlement. Hana's T+0 execution allowed the bank to receive funding immediately upon issuance.
The transaction relied on Euroclear's Digital Financial Market Infrastructure for all processing steps. This system integrates blockchain technology with existing central securities depository networks.
Institutional investors accessed the bond through their current Euroclear accounts without new software. This approach removes the need for separate blockchain installations for buyers.
First direct use of Euroclear ledger
The Korea Herald reports this is the first direct use of Euroclear's blockchain by a Korean financial institution. The bank used documentation from its existing global medium-term note program.
Standard Chartered acted as the sole lead manager for the entire issuance process. The bank stated this step moves blockchain technology into mainstream capital markets.
Streamlined administrative processes reduce costs
The shorter settlement cycle reduces the administrative burden on both issuer and investors. Funds arrive sooner, improving liquidity management for the issuing bank.
Hana Bank plans to continue adopting this advanced infrastructure for future funding. The strategy aims to meet the evolving needs of global institutional investors.
