KEB Hana Bank, one of the largest banks in South Korea, is set to offer digital asset custody services through a new partnership with the leading BitGo Trust Company in the second half of 2024.
Yonhap reported that KEB Hana Bank and BitGo jointly signed a strategic business agreement to establish digital asset custody in South Korea. The commercial bank has 111 branches, nearly $10 billion in local banking assets, and $490 million in equity.
Hana Bank representatives purportedly announced the news on September 5 at the Korea Blockchain Week industry conference.
As part of the collaboration, the parties will establish a joint venture incorporating the custody solutions of BitGo and the financial services and compliance expertise of Hana Bank.
A Hana Bank executive said, “By promoting digital asset custody business with global partners, we hope to strengthen consumer confidence in the domestic digital asset market and consumer protection.”
BitGo’s chief executive officer, Mike Belshe, said the company will enhance transparency and security in the South Korean digital asset industry.
According to online reports, Hana Bank and BitGo plan to initiate their joint cryptocurrency custody venture in the second half of 2024.
Hana Bank has recently expressed interest in tokenized deposit technology as an alternative to private stablecoins and central bank digital currencies.
The bank and local private banks such as Woori Bank and Maeli Business News Korea published a report in July 2023 describing the so-called “certificate of deposit” tokens that could potentially replace conventional currency and deposits without disrupting the traditional banking system.