Major Bank Dabbling In Crypto
According to The Korean Economic Daily report, dated 11th of July, Woori Financial Group announced launching digital asset custody services. To clarify, Woori Bank, the banking unit of Woori Woori Financial Group, is a major South Korean financial institution. Moreover, it is not the only one to move forward with the launch of crypto custody services. There has been an increasing number of leading South Korean banks establishing joint ventures to enter the crypto market.
D-Custody, A Joint Venture
Coinplug, a Bitcoin-based fintech solution firm, is the one Woori Bank is partnering with. Together they are establishing a digital asset custody joint venture named as D-Custody. Coinplug claims to be the largest shareholder of D-Custody. Woori Bank closely follows this. Meanwhile, we can expect the incorporation of this joint venture to come along in the coming weeks.
Why Do Banks Need To Dabble In Crypto
Many major banks are venturing into joint ventures to enter the crypto market because Korean legislation prohibits domestic entities from accessing crypto exchange services. All this is to gain a significant amount of foothold in the existing, growing demand for cryptocurrency. A Woori Bank representative mentioned:
“In overseas markets, the digital asset custody has become successful, established practice among the new services offered by the banks.”
The Quadrant of Crypto Custody
Almost a year has passed since the declaration by four of the five largest banks to launch a crypto-custody service. These banks include some big names like Kookmin, Shinhan, NH Nonghyup, and Woori. Finally, Woori is completing the quadrant as well, a step in the right direction.