KEB Hana Bank, one of the leading banks in South Korea, is set to enter the digital asset custody sector in partnership with BitGo Trust Company. This move comes as the bank looks to expand its offerings and cater to the growing demand for cryptocurrency custody services.
Under a strategic business agreement, KEB Hana Bank and BitGo will work together to establish a digital asset custody solution in South Korea. The bank, which boasts a network of 111 branches and approximately $10 billion in local banking assets, sees this partnership as a significant step towards strengthening trust in the domestic digital asset market while also ensuring consumer protection.
The announcement was made during the Korea Blockchain Week, a prominent cryptocurrency industry conference held in South Korea. Hana Bank’s executives shared their plans for the collaboration, emphasizing the importance of teaming up with global partners to enhance the custody business.
The joint venture will leverage BitGo’s proven custody solutions and Hana Bank’s financial services expertise to create a secure and reliable platform for storing digital assets. Both parties are looking to capitalize on their respective strengths to enhance transparency and security in the South Korean digital asset industry.
According to reports, the targeted launch for their joint cryptocurrency custody venture is set for the second half of 2024. This timeline allows ample time for collaboration, development, and regulatory compliance before introducing the service to the market.
It’s worth mentioning that this move towards digital asset custody aligns with Hana Bank’s broader interest in exploring tokenized deposit technology. In collaboration with other Korean private banks like Woori Bank and Maeli Business News Korea, the bank released a report in July 2023 discussing the potential of “certificate of deposit” tokens. These tokens could potentially replace traditional notes and deposits without disrupting the existing banking system.
By venturing into digital asset custody, KEB Hana Bank aims to meet the evolving needs of its customers and stay ahead in the rapidly progressing cryptocurrency landscape. With the backing of BitGo’s established expertise in custody services, the bank seeks to establish itself as a trusted custodian and contribute to the growth and maturation of the local digital asset market.
This collaboration marks a significant milestone in South Korea’s financial landscape. As digital assets continue to gain popularity and acceptance globally, more traditional financial institutions recognize the importance of incorporating digital asset custody services into their offerings.
Overall, KEB Hana Bank’s partnership with BitGo represents a strategic move to expand its services and tap into the booming digital asset market. With the launch of their joint venture on the horizon, the bank aims to position itself as a leader in the digital asset custody space in South Korea, providing secure and seamless services to its customers while fostering trust in the industry.