Singapore – Hana Securities today announced that it has gained exposure to a Digitally Native Note (“DNN”) through a Total Return Swap (“TRS”) structure, marking their first entry into the digital bond market. The investment aligns with their long-term strategy to participate in technology-driven capital-market innovation. Standard Chartered acted as the TRS provider, leading the structuring and execution of this pioneering TRS tied to a digital asset. The landmark transaction sets a new standard by introducing an innovative digital asset-linked product and advancing the region’s digital-markets agenda.
Through the TRS, the South Korean broker dealer obtains full economic return and risk from a DNN issued by a well-rated Financial Institution, enabling participation in a landmark digital product without requiring any changes to existing operational or settlement infrastructure.
The DNN has been listed on the London Stock Exchange’s International Securities Market (ISM), achieving T+0 instant settlement via Euroclear’s Digital Financial Market Infrastructure (D-FMI). Euroclear’s D-FMI facilitates the issuance, distribution and settlement of fully digital international securities using distributed ledger technology (DLT).
The deal, led by Mr. Yang, Tae Hee and Mr. Chun, Seungho from Hana Securities’ Macro Trading Department, positions Hana Securities as one of the leading players in the digital bond space in Korea, supporting their broader ambition on next generation financial markets products and unlock new channels of digital funding and investment, reflecting the growing interest in digitally enabled fixed-income assets from buy-side institutions.
Seong Muk Kang, CEO, Hana Securities, said: “This trade signals clear appetite for investor adoption of technologically advanced financial market product. Hana Securities Co., Ltd. is pleased to participate in this digital journey. We acknowledge Standard Chartered’s instrumental role in enabling this milestone and driving this evolution. Hana Securities remains committed to contributing towards the development and adoption of next-generation investment infrastructure and product.”
Eun Mo Lee, Regional Head of Markets FI Sales, NEA, Standard Chartered, said: “Digitally native notes are offering tangible, real-world efficiencies for financial markets and this transaction reflects the increasing demand for innovative structuring and execution. We are pleased to distribute the DNN in a synthetic manner reflecting our commitment to offering structures that enable our clients to achieve their corporate goals and the deep relationship we have with Hana Securities.”
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