In a transformative move for South Korea's financial sector, KEB Hana Bank, a major financial institution, is set to offer digital asset custody services in late 2024. This initiative comes through a strategic partnership with BitGo Trust Company, a renowned cryptocurrency custody firm.
The collaboration, unveiled during Korea Blockchain Week, represents a significant milestone for South Korea's digital asset market. With over $448 billion in assets, Hana Bank holds substantial financial clout, boasting 111 branches, local banking assets nearing $10 billion, and $490 million in equity.
Under this alliance, Hana Bank and BitGo will establish a joint venture, integrating BitGo's advanced custody solutions with Hana Bank's financial expertise and strict compliance standards. The primary goal is to enhance transparency and security within the domestic digital asset market, fostering trust among consumers.
An executive from Hana Bank expressed their commitment to this endeavor, aiming to strengthen trust in the domestic digital asset market and ensure consumer protection. This move underscores Hana Bank's dedication to embracing digital innovation.
BitGo CEO Mike Belshe emphasized their commitment to the South Korean digital asset sector, with a focus on bolstering transparency and security. The California-based BitGo serves clients in over 50 countries, including industry giants like Nike.
In addition to the custody partnership, BitGo plans to establish an office in South Korea in the latter half of 2024, following the acquisition of necessary licenses to comply with local regulations. BitGo recently secured $100 million in a Series C funding round, raising its valuation to an impressive $1.75 billion.
South Korea's Financial Services Commission has also announced plans to adapt electronic securities laws to include blockchain-powered security tokens within its regulatory framework. This collaboration between Hana Bank and BitGo positions South Korea as a global leader in secure and regulated cryptocurrency services.
As the world embraces the digital economy, this partnership underscores the importance of adapting to evolving financial technologies while ensuring their safety and accessibility to all.