South Korean Hana Bank and BitGo to launch joint crypto custody venture
Hana Bank and BitGo are expected to launch a crypto custody service in the second half of 2024.
Hana Bank is interested in having tokenized deposit technology replace central bank digital currencies and private stablecoins.
South Korean Parliament in June 2023 passed the Virtual Asset User Protection legislation, which integrates 19 crypto-related bills.
Korea Exchange Bank (KEB) Hana Bank, one of the biggest banks in South Korea, and the leading cryptocurrency custody company BitGo Trust Company has entered into a partnership to enable KEB Hana Bank to provide digital asset custody services. According to the local news outlet Yonhap, KEB Hana Bank and BitGo reached a strategic business deal to jointly develop digital asset custody in South Korea.
The bank’s representatives reportedly made the announcement on September 5 during the “Korea Blockchain Week” conference for the cryptocurrency sector.
The commercial bank has outlets in 111 locations and about $10 billion in local banking assets and equity.
Hana Bank and BitGo collaboration
Korea Exchange Bank (KEB) Hana Bank and BitGo will work together to create a joint venture that will combine Hana Bank’s knowledge of financial services and compliance with BitGo’s crypto custodial solutions.
According to BitGo’s CEO Mike Belshe, the company will concentrate on strengthening the security and transparency of the South Korean digital asset market. On the other hand, a Hana Bank executive reportedly said:
“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.”
According to online reports, Hana Bank and BitGo want to establish their joint cryptocurrency custody business in the second half of 2024.
Hana Bank’s interest in tokenized deposits
Hana Bank has shown interest in tokenized deposit technology as a substitute for central bank digital currencies and private stablecoins.
The bank, along with regional private banks including Woori Bank and Maeli Business News Korea, published a study in July 2023 describing the so-called “certificate of deposit” tokens that would eventually replace conventional notes and deposits without upsetting the established banking system.