Blockchain & Crypto

South Korean Bank to Launch a Joint Crypto Custody Project With BitGo

KEB Hana Bank and BitGo are preparing to offer joint digital asset custody services

South Korean Bank to Launch a Joint Crypto Custody Project With BitGo

One of the top South Korean banks, KEB Hana Bank, has partnered with the cryptocurrency custody firm BitGo Trust Company to jointly establish a digital asset custody service, per the report of the local news agency Yonhap.

The strategic business agreement presupposes that a joint cryptocurrency custody venture will launch in the second half of 2024. The venture will leverage BitGo’s custody solutions and Hana Bank’s financial service and compliance expertise.

The bank with a 111-branch network, local banking assets of nearly $10 billion and equity of $490 million reportedly expects to strengthen trust in the domestic digital asset market and consumer protection with the new partnership.

BitGo CEO Mike Belshe has also noted that the firm will focus on enhancing transparency and security in the South Korean digital asset industry.

Hana Bank has continuously expressed its interest in cryptocurrencies. Contrary to popular CBDC and private stablecoin industry trends, the institution prefers tokenized deposit technology. Hana believes the so-called “certificate of deposit” tokens could potentially replace customary notes and deposits without disrupting the traditional banking system.

The position goes in line with the official stance of the South Korean government, which believes that the issuance of stablecoins requires more stringent rules than other digital currency operations, potentially affecting the stability of the national financial system.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.