South Korean Hana Bank Teams Up with BitGo to Enter the Crypto Custody Business
In a strategic move, KEB Hana Bank, one of the largest banks in South Korea, has partnered with BitGo Trust Company, a major cryptocurrency custody firm, to offer digital asset custody services. This collaboration aims to establish a joint venture that will provide digital asset custody solutions within the country.
At the recent Korea Blockchain Week conference, representatives from Hana Bank made the official announcement regarding their partnership with BitGo. With a vast network of 111 branches and substantial banking assets and equity, Hana Bank is well-positioned to venture into the crypto custody business.
The joint venture will leverage BitGo’s expertise in providing secure custody solutions and Hana Bank’s financial services and compliance knowledge. By combining these strengths, they aim to enhance trust in the domestic digital asset market and ensure consumer protection.
Hana Bank’s executive expressed optimism about the partnership, stating, “By promoting digital asset custody business together with global partners, we expect to contribute to strengthening trust in the domestic digital asset market and consumer protection.”
For BitGo, this collaboration provides an opportunity to further enhance transparency and security in the South Korean digital asset industry. Mike Belshe, the CEO of BitGo, highlighted the company’s commitment to these objectives.
According to reports, Hana Bank and BitGo are planning to launch their joint cryptocurrency custody venture in the second half of 2024. This timeline reflects the necessary preparations and regulatory requirements involved in establishing a secure and compliant custody solution.
Interest in Tokenized Deposit Technology
Aside from their foray into the crypto custody business, Hana Bank has shown interest in tokenized deposit technology. In collaboration with local private banks like Woori Bank and Maeli Business News Korea, Hana Bank issued a report exploring the potential of “certificate of deposit” tokens.
These tokens have the potential to replace traditional notes and deposits without causing disruptions to the existing banking system. Hana Bank’s exploration of these tokenized deposit solutions shows their proactive stance in embracing innovative technologies within the banking industry.
The partnership between Hana Bank and BitGo to enter the crypto custody business is a significant development in South Korea’s digital asset market. By leveraging BitGo’s secure custody solutions and Hana Bank’s financial expertise, this joint venture aims to strengthen trust and ensure consumer protection.
As Hana Bank and BitGo prepare to launch their cryptocurrency custody venture in 2024, it will be interesting to see how they navigate the regulatory landscape and provide a secure and compliant custody solution for the South Korean market.
Editor Notes: Partnering for Crypto Custody Success
The collaboration between Hana Bank and BitGo is a testament to the growing interest in cryptocurrency custody services worldwide. As more traditional financial institutions recognize the potential of digital assets, partnerships with established custodians like BitGo can bring added security and compliance expertise to the table.
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