South Korea’s Shinhan Asset Management has entered into a memorandum of understanding with the Solana Foundation, Etherfuse, and Orca to explore the tokenization of ultra-short-term bond funds denominated in won on the Solana blockchain.
South Korean regulatory developments
This initiative coincides with South Korea’s ongoing preparations for a regulatory framework concerning security token offerings (STOs). The framework aims to enable the compliant issuance and trading of tokenized securities within the country’s rapidly changing digital asset environment.
The proof of concept will focus on several key areas, including know-your-customer (KYC) and anti-money laundering (AML) protocols, blockchain-based fund operations, foreign-exchange compliance, and ensuring on-chain liquidity.
BlackRock model and institutional experimentation
The project draws inspiration from BlackRock’s BUIDL, a flagship initiative in the tokenized asset space. However, unlike an official product launch, this agreement does not provide immediate access to live financial products or guarantee any capital flows to Solana.
Instead, it serves as an early experiment to assess Solana’s suitability for institutional financial instruments in a digital asset market that attracts intense scrutiny across Asia.
Shinhan Asset Management, one of South Korea’s largest asset managers, is known for its efforts to modernize financial products. The Solana Foundation leads the development and promotion of the Solana blockchain, while Etherfuse and Orca provide technology and decentralized finance expertise to the collaboration.
Mini dictionary: Tokenization refers to the process of converting traditional financial assets, such as stocks or bonds, into digital tokens that can be traded and settled on a blockchain.
Decline in Solana network trading activity
While these institutional trials aim to broaden Solana’s use cases, on-chain data points to a marked slowdown in market activity. According to Galaxy Research’s Solana Q2 2026 report, network fees dropped approximately 44% from the previous quarter to around $50 million in the second quarter. Fee revenues now make up only about 6% of the nearly $900 million quarterly peak recorded between late 2024 and early 2025.
| Period | Solana Network Fees | Quarterly Change |
|---|---|---|
| Q4 2024–Q1 2025 (peak) | $900 million | – |
| Q2 2026 | $50 million | -44% vs. previous quarter |
Galaxy Research attributed the decline primarily to reduced trading of memecoins and a fall in maximum extractable value (MEV) activity. Additionally, both Jito tips and base as well as priority fees have dropped, signaling less active trading across the platform.
Mini dictionary: Jito tips are voluntary payments users provide to validators and searchers on the Solana network for the processing of transactions that maximize extractable value (MEV).
Strategic shift for Solana
Memecoin trading and other speculative activity previously made Solana one of the most vibrant blockchains during the 2024–25 crypto cycle. However, continued reliance on speculative trading leaves the network exposed to volatility and sudden drops in transaction volume.
The collaboration to tokenize real-world assets (RWA) such as bond funds could offer a more sustainable source of activity and attract increased institutional participation. Should their proof of concept evolve into regulated offerings, it may demonstrate whether Solana can establish itself as reliable infrastructure for mainstream financial markets.
While Solana was a leading network for memecoin activity, the shift toward institutional asset tokenization could anchor broader, longer-term growth if the pilot with Shinhan Asset Management progresses beyond the initial testing stage.
