Check These Four Banks and Their Moves Into Bitcoin & Crypto Custody

Banking Bitcoin Cryptocurrency Custody NFT South Korea
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: iStock/rzelich

South Korean banks are looking to expand their crypto custody offerings – as competition in the sector begins to intensify.

Only a small handful of banks have thus far agreed to work with crypto exchanges, offering their customers real-name banking services, with the majority ruling out the notion of working with trading platforms “for the time being.” But it appears that banks are far more comfortable with the idea of helping exchanges store their customers’ fiat and crypto.

Per Asia Kyungjae, some of South Korea’s biggest banking players have been looking for indirect ways to enter the crypto custody game, as existing banking laws prevent mainstream financial institutions from handling cryptoassets. But banks have been able to sidestep this by establishing joint-venture firms or making M&A moves.

Here is a breakdown of some of the biggest banks’ most recent crypto custody moves.

NongHyup (NH Bank)

Asia Kyungjae noted that NH has been “the most active player in the custody business,” and in the past few days has made a “strategic equity investment” in a custody specialist named Cardo. The latter is currently “preparing to launch” a new service and is looking to bolster its credibility by “acquiring information security management system certification” from a government issuing agency. It also has plans to roll out digital KRW custody offerings.

Kookmin (KB Bank) 

KB sealed a deal with Haechi Labs and Hashed in November last year to co-launch the Korea Digital Asset (KODA) joint venture, becoming the first bank in the industry to provide digital asset custody services. It has picked up a number of high-profile customers in the period since its inception, including the crypto-keen gaming giant WeMade.

Shinhan

Shinhan has also made “a strategic equity investment” in the Korea Digital Asset Trust (KDAC), a “digital asset management company.” It also has some notable clients, such as NXC, the holding company of the gaming giant Nexon, which also owns the Bitstamp and Korbit exchanges. Alpha Asset Management is also a client.

Woori

Woori has teamed up with the fast-growing blockchain and crypto player Coinplug to co-launch a crypto custody firm named Decustody.

____

The media also outlet noted that in addition to cryptoassets such as bitcoin (BTC), banks are looking to extend their custody services to non-fungible tokens (NFTs) and security token offerings (STOs).

An industry insider explained that crypto custody does not require banks to conduct money-laundering checks, meaning that “from the bank’s point of view,” custody is “less burdensome” than offering banking services for exchanges,” adding that custody could “generate new commission income” for banks.

The insider added that it “also” offered banks “an opportunity” to enter a sector they have been looking for a way into for some time.

As previously reported, a domestic banking think tank recently recommended that banks actively pursue crypto custody-related business.

Meanwhile, a South Korean university says it is attempting to create a set of legal standards for the crypto sector that could be applied across the North East Asia region.

NoCut News reported that the effort is being spearheaded by JeonBuk National University’s Northeast Asian Law Research Institute, which will “review domestic and international trends in cryptocurrency and present standardization standards for various legal areas” – later seeking to “and “export law” to the wider North East Asian area.
___
Learn more: 
Think Tank Tells South Korean Banks: Start Offering Crypto Custody Services 
Security Firm Develops ‘Crypto Bunker’ That’d Make a Bond Baddie Blush 

Germany’s Biggest Bank Talked the Talk, Now it Walks the Crypto Walk
Maker Rises as Societe Generale Asks for Loan Backed by Bond Tokens 

More Articles

DeFi News
From $10K to $75K: How Dave Portnoy Pumped and Dumped a Meme Coin on His Followers
Hassan Shittu
Hassan Shittu
2025-02-07 23:50:53
DeFi News
Donald Trump’s World Liberty Financial Set to Create Strategic Crypto Reserve: Report
Julia Smith
Julia Smith
2025-02-07 23:19:22
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors