South Korea’s Shinhan Bank has invested in a crypto custody service backed by local crypto exchange Korbit.
Shinhan Bank, the oldest banking institution in South Korea, continues its efforts to introduce digital-asset custody services with a new investment.
According to a Thursday report by news agency Yonhap, Shinhan Bank has invested in Korea Digital Asset Trust, or KDAC, an industry consortium of businesses that provide digital-asset custody. The initiative was launched by Korbit in collaboration with blockchain startup Blocko and digital-asset research company Fair Square Lab.
With the new investment, Shinhan Bank moves closer to offering its own cryptocurrency custody business. In August 2020, Shinhan Bank announced its plans to introduce crypto custody alongside another major South Korean bank, Woori.
Shinhan Financial Group chairman and CEO Yong-Byung Cho said that digital-asset custody will benefit from the bank’s compliance capabilities and custody experience. “We will secure competitiveness in custody services and proactively respond to the rapidly changing digital asset market due to the implementation of the Special Financial Information Act,” the executive stated.
Cointelegraph reached out to Shinhan Bank and Korbit with additional queries regarding the investment. This article will be updated pending new information.
Shinhan Bank has previously invested in companies backing the KDAC initiative. In August 2019, Shinhan Bank participated a $7.5 million funding round for Blocko. The bank is also involved in blockchain-related developments like blockchain stock lending.