Hana Securities announced it gained exposure to a Digitally Native Note (DNN) through a Total Return Swap (TRS) structure, marking their entry into the digital bond market. The investment aligns with their strategy to participate in tech-driven capital-market innovation. Standard Chartered acted as the TRS provider, enabling the “structuring and execution” of this TRS tied to a digital asset.
The transaction sets a standard by introducing a “digital asset-linked product and advancing the region’s digital-markets agenda.”
Via the TRS, the South Korean broker dealer obtains “full economic return and risk from a DNN issued by a Financial Institution, enabling participation in a digital product without requiring 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 players in the digital bond space in Korea, “supporting their ambition on next generation financial markets products and unlock channels of digital funding and investment.”
Seong Muk Kang, CEO, Hana Securities, said that “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.”
They acknowledge Standard Chartered’s “role in enabling this milestone and driving this evolution.”
Hana Securities remains committed “to contributing towards the development and adoption of investment infrastructure and product.”
Eun Mo Lee, Regional Head of Markets FI Sales, NEA, Standard Chartered, said that digitally native notes are now “offering efficiencies for financial markets and this transaction reflects the demand for innovative structuring and execution.”
They are pleased to distribute the DNN in “a synthetic manner reflecting their commitment to offering structures that enable clients to achieve their corporate goals and the relationship they have with Hana Securities.”
