KEB Hana Bank, one of South Korea's largest banks, is teaming up with BitGo Trust Company, a contributor in the cryptocurrency custody business. The goal of this partnership is to provide digital asset custody services in South Korea. Digital asset custody involves securely storing cryptocurrencies and other digital assets on behalf of customers, ensuring their protection from theft or loss.
Cryptocurrency Custody Venture and Interest in Tokenized Deposits
Being one of the major commercial banks in South Korea, KEB Hana Bank has local banking assets worth nearly $10 billion and equity of $490 million. It has entered into a strategic business agreement with BitGo to jointly establish digital asset custody services within South Korea. The partnership was publicly disclosed at the Korea Blockchain Week conference.
The collaboration will involve the creation of a joint venture that combines BitGo's expertise in cryptocurrency custody solutions with KEB Hana Bank's financial services and regulatory compliance knowledge. The partnership aims to strengthen trust within South Korea's digital asset market and enhance consumer protection by promoting secure digital asset custody services.
KEB Hana Bank and BitGo plan to launch their joint cryptocurrency custody venture in the second half of 2024. The bank has shown interest in tokenized deposit technology as an alternative to traditional private stablecoins and central bank digital currencies. This technology has the potential to replace conventional notes and deposits without disrupting the traditional banking system.
KEB Hana Bank Filed 46 Blockchain Patents in 2019
Back in 2019, KEB Hana Bank, the largest foreign exchange bank in South Korea, made a move in the blockchain field by filing 46 patents related to blockchain technology. This marks one of the most extensive disclosures of blockchain intellectual property ever recorded. The bank's patent applications cover a diverse range of business models utilizing blockchain, including methods for electronic contracts, overseas product purchases, and delivering blockchain services to enterprise clients. This proactive approach displays KEB Hana Bank's commitment to exploring and implementing blockchain technology across various aspects of its operations, highlighting the increasing importance of blockchain in the financial industry and its potential to transform various business processes.
South Korea's Growing Affection for Cryptocurrency and Blockchain Technology
South Korea is rapidly adopting blockchain technology and cryptocurrencies in various sectors. Over one million people have embraced a blockchain-based digital driver's license app in a short span, highlighting the non-financial applications of blockchain.
Earlier, KEB Hana Bank partnered with the Korea Expressway Corporation to implement a blockchain-based toll system on the country's highways, improving infrastructure and logistics. Additionally, Seongnam is expanding its payment program with digital gift certificates, while in Busan, beachgoers can use Bitcoin and Ethereum for services, highlighting the acceptance of cryptocurrencies in everyday activities. These developments underscore South Korea's growing interest in and integration of blockchain technology and digital currencies across diverse industries, reflecting a global trend towards blockchain adoption beyond finance.
In essence, KEB Hana Bank's partnership with BitGo represents a step towards providing secure digital asset storage services in South Korea, catering to the growing demand for cryptocurrency-related financial services in South Korea.
