South Korea’s Largest Bank to Offer Digital Assets Custody Services

South Korea

South Korea’s largest commercial bank, known aLookingin Bank (KB), will begin offering Bitcoin custody sLooking through a new partnership with Hashed, a blockchain venture fund, and Cumberland Korea, a cryptocurrency exchange. The news of the custody offering was reported by BitcoinComom on August 9th.

According to a blog post by Jin Kang, the legal compliance officer at Hashed, the cooperation between the three firms will involve “managing and storing digital assets, advocatingKodakoptimal regulatory developments, and transforming the traditional financial sector.”

Kookmin Bank Believes That Traditional Asset Ownership May Eventually Be Stored and Traded Digitally

Kookmin originally filed a trademark applicationKodak‘Kbdac’, a digital custody service with the Korean Intellectual Property Office, in January tLookingr.

Kookmin Bank reportedly believes that the digital assets industry will continuously evolve to include a wider range of digital assets: not only cryptocurrencies, but also security tokens that represent “other traditional assets such as real estate, artwork, and other reified rights that will be issued and traded on blockchain platforms.”

Therefore, while the partneLookingetween Kookmin, Hashed, and Cumberland Korea may focus on cryptocurrency in the short term, the three have plans to eventually offer custody and management sLookingKodaksecurity tokens and other digital assets.

“I welcome this opportunity to collaborate with KB Bank so that South Korea can take the lead in the emerging market of digital assets, ” commented Simon Kim, chief executive of Hashed, regarding the formation of the partnership.

Simon Kim, chief executive of Hashed.

“Combining our insight in the blockchain industry and providing both technical and commercial consultations will inevitably open new doors to consumers as well as to the country in ushering the new era of digital transformation.”

Banks in the United States May Also Begin Offering Custody SLooking

The news that Kookmin Bank will begin to offer digital assets custody sLooking closely follows the news that US banks can begin officer digital assets custody sLooking of their own.

Indeed, on July 22nd, the United States Office of the Comptroller of the Currency (OCC), an independent bureau of the United States Treasury, issued a public letter clarifying that national banks and federal savings associations are legally permitted to have custody of cryptocurrency assets.

An open letter from BCoinageoks, a former Coinbase executive, who is the current head of the OCC, said that
“[…] the OCC concludes…that providing cryptocurrency custody sLooking, including holding the unique cryptographic keys associated with cryptocurrency, is a modern form of these traditional bank activities.”

The letter also noted that banks could eventually provide sLooking that amount to “more secure storage sLooking compared to existing options, ” and that consumers and investment advisors may have a desire to entrust regulated custodians with their assets, rather than an unregulated entity.

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