The largest of the South Korean banks announced their intention to offer custody services in Bitcoin for their clients. This is KB Kookmin Bank (KB), who is going to the side of the new form of money.
According to information from the institution itself, exposed in a Medium publication, the banking firm signed a contract with a Blockchain company, Hashed, and the Cumberland Korea exchange.
With this new agreement, the main cryptocurrency takes a new step towards its consolidation as an asset for safe use. It should be noted that dozens of institutional investors in the United States are currently buying Bitcoin in large quantities.
State bank offers custody services in Bitcoin
It should be noted that this financial institution is owned by the State of Korea. Likewise, since January of this year, the bank submitted an application to the corresponding entities to operate in crypto assets.
Under the Kbdac brand, the institution will cover a field of more than 20 areas related to cryptocurrencies. Bitcoin will be among these services offered by the aforementioned largest bank in South Korea.
On the other hand, in a statement published on August 7, the institution assures that they will not be limited to the use of cryptocurrencies. They explain that, in addition, they will evolve towards the field of real estate and works of art. All of them are considering issuing and marketing them through the Blockchain platform.
Part of a competition
This step towards the new technology given by KB, is a response to the plans of the competition. Rival bank NH Bank, announced that it would also offer custody services in cryptocurrencies, these will focus on corporate services.
In this way, Bitcoin begins to make a firm presence among Korean banks, being among the services of these institutions. Another important fact is that some limitations that existed around the use of cryptocurrencies in that Asian nation are being reformed.
According to news portals, Simon Kim, executive director of Hashed, the firm with which KB partnered, would have assured that it is a sample of the transformation that is taking place in the world of finance.
“The combination of our knowledge in the Blockchain industry and the provision of technical and commercial consultations, will inevitably open new doors for consumers and the country to usher in the new era of digital transformation”, he asserted.
An echo of the United States?
The decision of this South Korean bank to incorporate Bitcoin among the services it offers to its clients comes after the important announcement in the United States about the role of banking in the world of cryptocurrencies.
It should be remembered that the Office of the Comptroller of Currencies gave the green light to local banks to trade cryptocurrencies. Banks will be able to store and manage cryptocurrencies on behalf of their users.
As already mentioned, Seoul had banned ICOs. However, in March it made an amendment that lifts the ban on these digital products. With this, cryptocurrencies were officially recognized by the State as exchange goods.
Data to take into consideration
- KB is a state-owned bank and is the largest in South Korea. Now, it is delving into the provision of services with cryptocurrencies.
- In March, the South Korean government lifted the ban on the issuance of cryptocurrencies.
- KB will partner with a Blockchain company and an Exchange to carry out its operations with Bitcoin and other digital currencies.
- With this agreement, cryptocurrencies seem to take another important step towards the full massification of their use.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional content management by the authors of CriptoTendencia.
2- External sources: Medium.com.