Shinhan Securities to Launch Tokenized Bond RWA Product Yield5 in July

Shinhan Securities plans to launch a tokenized real-world asset product backed by bonds on its balance sheet. The offering would add bonds held by a regulated financial institution to on-chain assets, extending efforts to connect 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 5%. Its portfolio will include bonds held by Shinhan Securities.

KIP previously launched Yield8, an RWA product targeting an annual return of more than 8%. While Yield8 is backed by private credit assets including Indonesian shipping finance, domestic gas station working-capital finance and financing for small and medium-sized businesses in Indonesia, Yield5 uses relatively more stable assets and lowers the target return to 5%.

The industry is paying attention to the use of Shinhan Securities-held bonds as underlying assets for an on-chain product. As more traditional financial assets owned 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 that KIP has invested in, entering the related business. Across the financial industry, efforts are continuing to move a range of real and financial assets on-chain, including bonds, real estate and private credit.

RWA refers to technology that issues tokens linked to real assets such as bonds and real estate, or to traditional financial assets, so they can be traded on blockchain networks.