Expansion of 'Blockchain Bonds' into Domestic Financial Sector: Will the Funding Paradigm Change? – Bitplanet

D-FMI Issuance and Settlement Structure Analysis and Domestic Institutions' Digital Bond Funding Path

[Block Media = Bitplanet] Hana Bank, a major commercial bank in South Korea, has joined Euroclear's distributed ledger technology (DLT)-based bond platform, 'D-FMI (Digital Financial Market Infrastructure)', as the first domestic bank. This report analyzes the implications of this development.

EXECUTIVE SUMMARY

Key Points

Hana Bank has become the first domestic commercial bank to join Euroclear's DLT-based bond platform, 'D-FMI (Digital Financial Market Infrastructure)'[1][2]. D-FMI is a platform utilizing distributed ledger technology, integrated into the Euroclear banking system. On this platform, Euroclear participating institutions issue and settle bonds[3][4]. On September 18, 2026, Hana Bank successfully issued a $100 million five-year floating rate note (FRN) through D-FMI[5][1]. This issuance was conducted using a 'same-day settlement (T+0)' method, where bond allocation and payment settlement were completed simultaneously on the transaction day[5][6].

Core Significance

Notably, since the World Bank's first issuance in 2023, the use of D-FMI has rapidly expanded from international organizations and public financial institutions to global commercial banks[7][8][9]. D-FMI applies distributed ledger technology only at the initial creation, allocation, and payment stages of bonds, while subsequent trading in the secondary market is designed to be linked with the existing Euroclear settlement network[4]. Hana Bank has also utilized the existing foreign currency bond issuance framework, the 'Global Medium Term Note (GMTN) program', allowing investors to trade the bonds through their existing Euroclear accounts without opening separate accounts[5][1][10].

Interpretation Hana Bank has integrated distributed ledger technology only at the issuance and settlement stages while maintaining its existing foreign currency bond issuance program, investor accounts, and capital market infrastructure. However, detailed cost data regarding issuance rates and fees were not included in the issuer's or underwriter's press releases, necessitating further verification to determine whether there were actual cost savings compared to conventional foreign currency bonds[5][1][6].

Key Monitoring Indicators

The number of domestic issuers adopting D-FMI and Hana Bank's additional issuances will be monitored to assess the platform's practical utilization. If interest rates and cost data that can be directly compared to conventional foreign currency bonds are disclosed in the future, a precise economic evaluation will be planned. By September 2027, the one-year anniversary of the first issuance, it will be observed whether subsequent issuances become regularized and whether specific cost savings figures are validated. If subsequent issuances continue, it can be concluded that D-FMI has established itself as a recurring foreign currency funding tool. Conversely, if no subsequent issuances are confirmed during the same period, it will be difficult to assess the repeat utilization. If cost data comparable to conventional foreign currency bonds are not disclosed, the economic evaluation will be deferred. Should the actual scope of same-day settlement differ from the initial announcement in the issuance contract or disclosure documents, the effectiveness of same-day settlement will be re-evaluated.

01 D-FMI Bonds Combining Distributed Ledger Issuance and Existing Settlement Network Transactions

On October 24, 2023, Euroclear announced the launch of its bond issuance service on the DLT-based platform D-FMI[3][4]. The international bonds issued digitally from the outset on this platform are referred to as 'Digital Native Notes (DNN)'[3][4]. In this report, all bonds issued using distributed ledger technology, including DNN, are collectively termed 'digital bonds'. The World Bank, the initial issuing institution, issued a €100 million three-year bond, which was listed on the Luxembourg Stock Exchange[3][7].

D-FMI processes the bond creation, initial allocation, and payment settlement on the distributed ledger. Once the bond issuance is approved by the issuing agent, the bond delivery and payment (in euros, dollars, etc.) occur simultaneously in real-time[4]. This is referred to as 'Delivery versus Payment (DvP)'. Participants in D-FMI immediately hold the allocated bonds in dedicated securities custody accounts within the platform[4]. Euroclear explains that it can handle everything from bond pricing on the issuance day to new allocations and subsequent secondary market transaction settlements[4].

The issued bonds and payments are automatically linked to the existing Euroclear settlement system, and subsequent trading in the secondary market is processed through the existing settlement network[4]. Bonds issued by the World Bank were also freely traded through the existing settlement network immediately after issuance, with the original bonds securely held in D-FMI[7]. D-FMI is integrated within the Euroclear banking regulatory framework, meeting the European Union's Central Securities Depositories Regulation (CSDR) requirements[3][4]. For investors, the ability to utilize existing trading infrastructure and liquidity management services is a significant advantage[3].

In summary, D-FMI combines distributed ledger technology at the initial issuance and allocation stages of bonds with the existing traditional settlement network in subsequent trading stages.

There are precedents for processing payment settlements through central bank distributed ledger networks. In November 2024, the French Caisse des Dépôts et Consignations (CDC) issued €100 million in bonds through D-FMI, settling payments using the French central bank's distributed ledger system[11]. This was part of the European Central Bank's (ECB) initiative for a 'central bank currency-based inter-institutional distributed ledger payment demonstration project'[11].

02 Expansion of D-FMI Issuers from International Organizations to Commercial Banks

According to publicly available major cases, the use of D-FMI was primarily centered around international organizations and public financial institutions from 2023 to 2024, but starting in 2025, general commercial banks began to join as major issuers[7][12][11][8]. Euroclear announced the first DNN issuance by Turkey's İşbank in June 2025, officially introducing it as a major success story following the World Bank, Asian Infrastructure Investment Bank (AIIB), and France's CDC[8].

Major Digital Bond Issuance Cases and Conditions for D-FMI (as of announcement/reporting time)

Source: Euroclear[3][12][8][11], World Bank[7], SC[13][9], Ledger Insights[14], Nasdaq Dubai[15], Citigroup[16], Hana Bank, SC[5][1]. Only conditions specified in public documents are listed. CMU is the bond settlement and custody system operated by the Hong Kong Monetary Authority (HKMA). ISM is the bond market for professional investors on the London Stock Exchange. 「-」 indicates items not specified in the source.

In 2026, participation from global major banks became even more pronounced. Citigroup issued the first structured DNN on the D-FMI platform through its Luxembourg subsidiary (Citigroup Global Markets Funding Luxembourg) in March 2026[16]. Standard Chartered (SC) created the first D-FMI issuance case for a 'Globally Systemically Important Bank (G-SIB)' by issuing its own bonds in August 2026[9]. A month later, in September 2026, Hana Bank became the first South Korean financial institution to be listed as a D-FMI issuer[1][2][10].

03 Implementing 'T+0 Same-Day Settlement' Using Existing Issuance Infrastructure

Hana Bank has issued a $100 million five-year floating-rate foreign currency bond. SC acted as the sole lead manager and dealer, responsible for the issuance structure design, while Citi participated as the issuance and payment agent, managing the entire settlement and delivery process. In terms of structure, Citi delivered the bonds to the dealer, who then allocated them to the final investors through Euroclear Bank. This bond is listed on the Singapore Exchange (SGX), and SC and Citi officially announced it as the first digital bond listing on SGX.

Hana Bank emphasized that the key aspect of being the 'first in the country' lies in the utilization of the platform and the implementation of 'T+0 same-day settlement.' Hana Bank stated that it achieved same-day settlement for foreign currency bond issuance for the first time in the country by processing bond allocation and payment settlement instantly on a distributed ledger. Compared to the existing settlement cycle for foreign currency bonds (which takes 3 to 5 business days), this significantly reduces waiting time. The lead manager SC also evaluated that this same-day settlement method enhances the certainty of funding for issuers and maximizes operational efficiency.

However, it is not the first case of a domestic bank issuing foreign currency bonds using blockchain technology. KB Kookmin Bank previously issued a $100 million blockchain-based foreign currency bond in the Hong Kong market in June 2026.

Instead of building new infrastructure from scratch, Hana Bank utilized its existing $10 billion Global Medium Term Note (GMTN) program to issue the bonds. GMTN is a system that allows for quick bond issuance by pre-setting issuance limits and basic conditions, and flexibly determining maturity and interest rates when needed. Hana Bank confirmed that it utilized the existing GMTN documentation framework and only made minor modifications to the contract terms to meet digital issuance conditions. As a result, investors can trade the bonds through their existing Euroclear accounts and trading terminals without the need for a separate system.

In terms of issuance conditions and participating institutions, the most similar precedent to Hana Bank's issuance is the bond issuance by Doha Bank in Qatar in December 2025. Doha Bank also issued a $150 million floating-rate bond and applied the same-day settlement method, with SC as the lead manager and Citi as the issuance and payment agent.

According to media reports, prior to Hana Bank, in 2026, Mirae Asset Securities, POSCO International, Korea Housing Finance Corporation, and KB Kookmin Bank issued digital bonds in the Hong Kong market. All four institutions chose HSBC's digital asset platform, 'Orion.' In the case of KB Kookmin Bank's issuance, it is linked to the Hong Kong Central Securities Depository (CMU).

Comparison of Digital Bond Issuance Paths for Domestic Institutions in 2026 (HSBC Orion vs Euroclear D-FMI)

Source: EToday, POSCO Newsroom, Money Today, Electronic Times, Hana Bank, SC. SOFR is the U.S. Secured Overnight Financing Rate. The settlement periods are based on explanations from each issuer. The quoted materials from Mirae Asset Securities, POSCO International, and Korea Housing Finance Corporation did not specify the names of the linked individual systems. 「-」 indicates items not listed in the respective sources.

There are differences in the settlement periods announced by each issuer. POSCO International and Korea Housing Finance Corporation announced that they shortened the settlement period from the existing 5 business days to 3 business days, while Hana Bank proposed same-day settlement (T+0). However, since the definitions of the shortening criteria differ by issuer, it is difficult to definitively determine functional superiority between platforms based solely on differences in settlement timing.

Meanwhile, the subsidy support system from the Hong Kong financial authorities also plays a significant role in the choice of issuance paths. The Hong Kong Monetary Authority (HKMA) supports 50% of the issuance costs for eligible digital bonds issued in Hong Kong (up to a maximum of 1.25 million HKD per case) through the 'Digital Bond Subsidy Scheme.' In particular, if four additional requirements, including an issuance scale of over 1 billion HKD, are met, the support limit can be expanded to a maximum of 2.5 million HKD. (POSCO International's issuance scale of 780 million HKD does not meet the minimum scale criteria for this expanded support.) The number of support instances is limited to 2 per issuer when combined with affiliates. The scheme began accepting applications on November 28, 2024, and will initially operate for three years.

Even if the expanded support limit (2.5 million HKD) is applied, the proportion of the subsidy relative to the issuance scale (minimum of 1 billion HKD) is only about 0.25% (self-calculated). This is merely a ratio of the total issuance amount and does not represent the actual reduction rate of issuance fees. The basic support (maximum of 1.25 million HKD) without a minimum scale restriction cannot be directly applied to this calculation.

KB Kookmin Bank and Korea Housing Finance Corporation expected to reduce issuance costs by utilizing this subsidy. In contrast, Hana Bank and the lead manager's press releases did not specify interest rates or fee conditions. Meanwhile, Euroclear D-FMI bonds can also be linked to the Hong Kong deposit network. Euroclear connected the infrastructure to allow for the clearing and holding of AIIB bonds issued through D-FMI via Hong Kong CMU in 2024.

Interpretation Domestic issuers may consider intuitive cost reduction incentives such as subsidies when determining overseas issuance paths. However, the cited materials only contain expectations for cost reductions resulting from subsidy utilization, and there is no clear causal relationship indicating that the subsidy was the reason for choosing the Hong Kong market. Therefore, it is difficult to conclude that the presence or absence of subsidies was an absolute factor in the choice of issuance paths.

05 Practical Utilization and Economic Verification Challenges of D-FMI

Whether domestic institutions will establish D-FMI as a regular foreign currency procurement method needs to be verified along two axes: 'utilization' and 'economics.' Utilization can be confirmed by the increase in the number of domestic issuers adopting D-FMI and Hana Bank's continued follow-up issuances.

To evaluate economics, data on general foreign currency bonds with the same maturity issued by the same issuer around the same time is needed. This will allow for a multi-faceted comparison of the spreads and total issuance costs of D-FMI bonds against general bonds. The effects of improved funding certainty and operational efficiency due to the introduction of same-day settlement (T+0) discussed in section 03 should be evaluated as operational value separate from simple interest rate reduction effects. Furthermore, the actual liquidity of trading in the secondary market must be verified through subsequent materials accumulated in the future, as it is not included in the press releases of issuers and lead managers.

Conclusion

Interpretation Hana Bank changed the issuance and settlement methods while maintaining the existing market system.

By utilizing the existing GMTN program and investors' Euroclear accounts, it adopted a practical approach to complete bond allocation and payment settlement on the same day through a distributed ledger. In 2026, domestic institutions are diversifying their digital bond issuance channels, following HSBC Orion and now Euroclear D-FMI.

Interpretation The issuer significantly reduced the settlement cycle, enhancing funding certainty and operational efficiency, while investors gained access to new digital bonds without the need for separate system construction. This can be seen as a successful combination of the existing financial network and distributed ledger technology.

However, the technical achievement of implementing 'same-day settlement' does not immediately lead to 'reduced procurement costs.' Since the specific issuance interest rates and fee conditions are not included in the issuer and underwriter press releases, it cannot be definitively stated whether funds were raised under more favorable conditions compared to general foreign currency bonds. The formation of liquidity in the secondary market and whether it can establish itself as a regular funding tool can only be clearly evaluated after market data accumulates in the future.

Interpretation The Bitplanet Research Lab focuses on how digital bonds can change the financing and execution of capital investments. For companies that need to invest in equipment costs and infrastructure upfront, securing funds at the necessary time is as important as the interest rate. Same-day settlement reduces the time from when the issuance conditions are confirmed to when payment is received. When this can be linked to the actual investment payment schedule, it can also help companies manage their finances. Therefore, when evaluating the economic viability of digital bonds, it is essential to consider not only the issuance interest rates and fees but also how much the costs of maintaining short-term borrowing or reserve funds change during the waiting period for payment.

Source

[1] Hana Bank becomes the first Korean bank to issue digitally native notes on Euroclear's D-FMI 1st
Standard Chartered, 2026-09-23
https://www.sc.com/en/press-release/hana-bank-becomes-the-first-korean-bank-to-issue-digitally-native-notes-on-euroclears-d-fmi/

[2] Hana Bank issues digital bond on Euroclear's D-FMI 1st
Euroclear, 2026-09-23
https://www.euroclear.com/newsandinsights/en/press/2026/mr-25-hana-bank-digital-bond-euroclear.html

[3] Euroclear launches DLT solution 1st
Euroclear, 2023-10-24
https://www.euroclear.com/newsandinsights/en/press/2023/2023-mr-14-euroclear-launches-dlt-solution.html

[4] D-FMI: Digital Financial Market Infrastructure 1st
Euroclear, date not specified (accessed on 2026-10-02)
https://www.euroclear.com/services/en/primary-issuance/digital-financial-market-infrastructure.html

[5] Hana Bank issues Korea's first 'T+0 same-day settlement' digital bond 1st
Hana Bank (distributed by Newswire), 2026-09-21
https://www.newswire.co.kr/newsRead.php?no=1043082 (syndication published)

[6] Citi Supports Hana Bank's First Digitally Native Note (DNN) Issuance on Euroclear's D-FMI Platform 1st
Citi, 2026-09-24
https://www.citigroup.com/global/news/press-release/2026/citi-supports-hana-bank-s-first-digitally-native-note-dnn-issuance-on-euroclear-s-d-fmi-platform

[7] World Bank is the First Issuer on Euroclear's New Digital Securities Platform 1st
World Bank, 2023-10-24
https://www.worldbank.org/en/news/press-release/2023/10/24/world-bank-is-the-first-issuer-on-euroclear-s-new-digital-securities-platform

[8] Euroclear powers Türkiye's first digitally native note issuance by İşbank 1st
Euroclear, 2025-06-30
https://www.euroclear.com/newsandinsights/en/press/2025/mr-17-euroclear-powers-turkiye-first-digitally-native-note-issuance-by-isbank.html

[9] Standard Chartered becomes first G-SIB to issue digitally native notes on Euroclear's D-FMI 1st
Standard Chartered, 2026-08-20
https://www.sc.com/en/press-release/standard-chartered-becomes-first-g-sib-to-issue-digitally-native-notes-on-euroclears-d-fmi

[10] Hana Bank issues $100 million digital bond via Euroclear's D-FMI, lists it on SGX
Ledger Insights, 2026-09-21
https://www.ledgerinsights.com/hana-bank-issues-100-million-digital-bond-via-euroclears-d-fmi/

[11] Issuance of France's first Digitally Native Note 1st
Euroclear, 2024-11-07
https://www.euroclear.com/newsandinsights/en/press/2024/mr-36-france-first-digitally-native-note.html

[12] Asian Infrastructure Investment Bank issues its first DNN 1st
Euroclear, 2024-08-23
https://www.euroclear.com/newsandinsights/en/press/2024/mr-26-aiib-issues-first-dnn.html

[13] Doha Bank issues USD150 million digital bond with instant settlement 1st
Standard Chartered, 2025-12-15
https://www.sc.com/en/press-release/doha-bank-issues-usd150-million-digital-bond-with-instant-settlement/

[14] Emirates NBD issues AED 1bn digital bond using Euroclear's D-FMI blockchain
Ledger Insights, 2026-01-15
https://www.ledgerinsights.com/emirates-nbd-issues-aed-1bn-digital-bond-using-euroclears-d-fmi-blockchain/

[15] Nasdaq Dubai welcomes Emirates NBD's ESG and digital bond issuances across multiple currencies 1st
Nasdaq Dubai, 2026-02-13

https://www.nasdaqdubai.com/exchange/media/press-releases/nasdaq-dubai-welcomes-emirates-nbd-s-esg-and-digital-bond-issuances-across-multiple-currencies

[16] Citi Issues Inaugural Digitally Native Structured Note on Euroclear's D-FMI DLT Platform 1st
Citi, 2026-03-09
https://www.citigroup.com/global/news/press-release/2026/citi-issues-inaugural-digitally-native-structured-note-on-euroclear-s-d-fmi-dlt-platform

[17] KB Kookmin Bank Issues Korea's First Blockchain-Based Dollar Digital Bond
Electronic Times, 2026-06-10
https://www.etnews.com/20260610000356

[18] Bond Issuance in Hong Kong and Platform Construction in Korea... Financial Sector Prepares for Token Securities Era
E Today, 2026-09-27
https://www.etoday.co.kr/news/view/2629327

[19] POSCO International Issues Korea's First 'Digital Bond' as a Non-Financial Company 1st
POSCO Newsroom, 2026-04-23
https://newsroom.posco.com/kr/포스코인터내셔널-국내-비금융기업-최초-디지털/

[20] Korea Housing Finance Corporation Issues $200 Million Digital Bond... First Public Institution
Money Today, 2026-05-08
https://www.mt.co.kr/finance/2026/05/08/2026050813411688851

[21] Guideline on the Digital Bond Grant Scheme 1st
Hong Kong Monetary Authority, 2024-11
https://www.hkma.gov.hk/media/eng/doc/key-functions/ifc/bond-market-development/Guideline_on_the_Digital_Bond_Grant_Scheme.pdf

[22] Law on Electronic Registration of Stocks and Bonds (Law No. 21318) 1st
National Law Information Center, Announced on 2026-02-03, Effective on 2027-02-04
https://www.law.go.kr/LSW/lsInfoP.do?lsiSeq=283195&viewCls=lsRvsDocInfoR

[23] Legislative Notice for Amendments to Electronic Securities Law and Capital Markets Law Related to Token Securities 1st
Financial Services Commission, 2026-10-01
https://www.fsc.go.kr/no010101/87838

[24] Announcement of Token Securities Policy Direction, 3rd Meeting of Public-Private Joint Token Securities Council 1st
Financial Services Commission, 2026-09-04
https://www.fsc.go.kr/no010101/87650

Data Limitations and Calculation Basis

① Limitations of Analysis and Data

• Characteristics by Source: The issuance conditions and settlement periods are organized based on press releases from issuers, underwriters, agents, and Euroclear's service descriptions. The existing settlement periods (3-5 business days, 5 business days) disclosed by each issuer are not aggregated based on the same criteria.
• Limitations of Contract Structure Disclosure: The issuance interest rates and cost conditions of this bond were not included in the press releases from the issuers and underwriters. Therefore, this report does not assess the effects from a cost perspective.
• Source of Initial Scope: This report is based on the official announcements from Euroclear and SC, which state that it is the first commercial bank in Korea to issue bonds on D-FMI. Hana Bank was introduced as the first issuer of digital bonds utilizing Euroclear's blockchain infrastructure, and Ledger Insights reported it as the first case of a Korean company.
• Sample Scope: The comparison targets for D-FMI are nine major cases disclosed by issuers, Euroclear, and specialized media, while the domestic comparison targets are five cases from 2026. Since this is not the complete issuance list for D-FMI, changes in the composition of issuers should be interpreted within the scope of these major cases.

② Self-Calculated Formulas

③ Methodology

• Data Prioritization: Official materials from companies and regulatory agencies → Original materials and aggregated data from databases → Specialized media → Syndication media → Community materials.
• Data Classification: Only classify as primary data if the original text has been directly verified. Information conveyed through reports is attributed to the respective media.
• Reference Date and Inquiry Date: Values confirmed at a specific point in time are marked as reference dates, while real-time fluctuating dashboard figures are marked as inquiry dates.
• Handling Conflicting Figures: When different figures are confirmed, both should be presented. If a reference value must be selected, prioritize the public disclosure of the calculation range, clarity of the inquiry point, and the possibility of separating detailed items over the media's recognition, and specify the selection basis in the text.
• Self-Calculation: Self-calculated figures are presented individually in Appendix ② with their respective formulas, reference dates, and limitations.
• Legal and Regulatory Interpretation: Regulatory agency materials are cited only within the scope of explaining general structural classifications and applicability, and should not be broadly interpreted as official classifications or approvals for specific products. Explanations of product structures and regulatory interpretations are separated into distinct paragraphs.
• Disclosure of Conflicts of Interest: The same disclosure statement is published in a fixed position at the top of all reports.

Issued by Bitplanet Research Lab / Written by Kim Tae-won / Reviewed by Kim Soo-young

Disclaimer: This material is for informational purposes only and is not an investment solicitation. It does not recommend trading specific stocks and does not provide price forecasts or target prices. The author is not a lawyer or investment advisor, and all figures are based on publicly available sources (as of the time of writing, subject to change).