Major South Korean Bank Joins the Crypto Custody Business

KB Kookmin Bank, one of the largest banks in South Korea, has partnered with blockchain venture fund, Hashed, and crypto trading platform, Cumberland Korea, to establish “strategic technology cooperation” on the custody of digital assets.

The companies belonging to the partnership state that their inception into the crypto custody business is a response to regulatory changes. These changes encouraged them to look into new business models — specifically ones which rely on blockchain technology.

Simon Kim, CEO of the Seoul and San Francisco-based firm, Hashed, stated:

“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.”

The announcement from KB Kookmin Bank comes after one of its major rivals, NongHyup, or NH Bank, said early in July that they plan to create crypto custodial services as well. NH Bank’s proposed platform will only focus on institutional investors, however.

The Bank of Korea reportedly chose to establish a “Digital Innovation department” through organizational reform in the second half of this year as well, according to the local news on July 22.