Korean Bank Woori To Start Offering Crypto Custodial Services
The group’s banking division, Woori Woori Financial Group, has turned out to be the latest top South Korean financial service provider to reveal its plans to introduce digital asset custody facilities, as per a July 11 article from The Korean Economic Daily.
Bank is establishing a digital asset custody firm called D-Custody, in partnership with Coinplug, a Bitcoin-focused fintech service business.
D-largest Custody’s stakeholder will be Coinplug, followed by Woori Bank. Incorporation of the joint project is planned in the following weeks.
Domestic companies are not permitted to use the solutions of cryptocurrency exchanges under current Korean law, which means that the country’s financial institutions may only participate in the crypto market through joint ventures or share holdings.
While domestic banks are barred from joining the cryptocurrency custody business directly, a growing number of large Korean financial firms are forming partnerships with partial ownership rights in order to acquire a presence in the field.
“In international markets, cryptocurrency custody has become turned out to be a profitable, accepted concept among the new facilities provided by banks,” a Woori Bank official said.
Kookmin Bank, Shinhan Bank, NH Nonghyup Bank, and Woori Bank, four of South Korea’s five major banks, had stated their plan to provide crypto custodial facilities as of August 2020. In March 2020, Kookmin, the country’s biggest banking institution, submitted a trademark application for its custodial services, before forming Korea Digital Asset Co. in November with the help of venture capital company Hashed and domestic blockchain focused service startup Haechi Labs.
Nonghyup Bank announced intentions to establish a custodial firm with Korea Information & Communications Co. in June last year, after forming a blockchain financial services alliance with blockchain firm Hexlant. Shinhan Bank stated in January 2021 that it has secured a controlling stake in Korea Digital Asset Trust, a crypto custody alliance sponsored by Korbit, a prominent domestic exchange.