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Cryptocurrency has finally earned recognition in the financial industry with some of the world’s largest top financial institutions already offering crypto-related products such as custodial services for Bitcoin (BTC) and Ether (ETH). If plans push through, Kookmin Bank (KB) might soon be joining the trend with the planned launch of the beta for its cryptocurrency custodial service within this month.
Kookmin Bank is set to become the first banking entity in South Korea to enter into the crypto space. KB confirmed that it will launch digital asset custody services in less than a year, according to Yahoo Finance.
The banking giant’s plan to launch a crypto custodial service was revealed by Cho Jin-Seok, Kookmin Bank’s Head of IT Technology Innovation Center during “THE CONFERENCE 2020” event. However, he also confirmed that the bank will be rolling out a beta service for corporate users sometime this month.
The bank’s foray into the crypto sector is made possible due to its investment in a new digital asset management company named Korea Digital Asset (KODA). Cho Jin-Seok said that the company’s participation in the joint venture will allow it to launch the planned digital asset custody service in less than a year.
Aside from KB, the collaboration is participated by a number of major cryptocurrency firms in Korea. These include the country’s leading crypto fund and accelerator, #Hashed, as well as the Seoul-based blockchain wallet development firm Haechi Labs.
In his presentation titled “Digital Assets and DeFi from the Financial Industry,” Cho Jin-Seok also hinted at the possibility that KB might move into the decentralized finance space. “I think that if the existing traditional financial sector in the institutional sector covers the DeFi service, which is insufficient, the risks of DeFi can be covered,” he said.
KB might be the first banking firm to offer crypto-related services in South Korea but other banks in the country as expected to move into the space as well. For instance, Nonghyup Bank has already established a consortium with the blockchain company Hexlant and the law firm Pacific Law back in June. Shinhan Bank also expressed interest in establishing its digital asset custody service and is considering a partnership with crypto exchange Kobit.
