Summary: Hana Bank, one of South Korea’s largest banks, has partnered with BitGo Trust Company to develop a digital asset custody service. The collaboration aims to combine Hana Bank’s expertise in financial services with BitGo’s crypto custody solutions. The joint venture is expected to launch in the second half of 2024. Additionally, Hana Bank has expressed interest in tokenized deposit technology as a potential replacement for central bank digital currencies and private stablecoins.
Hana Bank and BitGo have announced plans to launch a crypto custody service through their joint venture. The partnership between Korea Exchange Bank (KEB) Hana Bank and BitGo Trust Company aims to provide digital asset custody services in South Korea. The collaboration was made public during the “Korea Blockchain Week” conference, which took place on September 5.
Hana Bank, with 111 locations and approximately $10 billion in local banking assets and equity, brings its financial services expertise to the collaboration. BitGo, a leading cryptocurrency custody company, offers its secure and transparent crypto custodial solutions. The joint venture aims to strengthen the security and transparency of the South Korean digital asset market.
BitGo’s CEO, Mike Belshe, emphasized the importance of this collaboration in enhancing trust in the domestic digital asset market and protecting consumers. Hana Bank also sees the partnership as an opportunity to contribute to consumer protection and boost confidence in the local digital asset market.
The joint cryptocurrency custody business is expected to be established in the second half of 2024. Hana Bank has also shown interest in tokenized deposit technology, which could potentially replace central bank digital currencies and private stablecoins. In July 2023, Hana Bank, along with other private banks, published a study on “certificate of deposit” tokens as alternatives to conventional notes and deposits without disrupting the established banking system.
Frequently Asked Questions (FAQ)
What is a cryptocurrency custody service?
A cryptocurrency custody service provides secure storage and management of digital assets, such as cryptocurrencies, on behalf of clients. It involves safeguarding the private keys or access credentials required to access and transfer these assets.
Why is the partnership between Hana Bank and BitGo significant?
The partnership between Hana Bank and BitGo is significant as it combines the financial expertise of Hana Bank with the secure custodial solutions offered by BitGo. This collaboration aims to enhance the security and transparency of the South Korean digital asset market and promote trust among investors and consumers.
What are tokenized deposits?
Tokenized deposits refer to digital representations of traditional certificates of deposit (CDs) or time deposits. These tokenized assets are built on blockchain or other distributed ledger technology and can be easily traded or transferred. Tokenized deposits offer potential benefits, such as increased liquidity and reduced settlement times.
What is the “certificate of deposit” token study published by Hana Bank?
Hana Bank, along with other regional private banks, published a study on “certificate of deposit” tokens in July 2023. The study explores the possibility of using tokenized deposit technology as an alternative to conventional notes and deposits. These tokens have the potential to replace traditional banking instruments without disrupting the existing banking system.
When will the joint cryptocurrency custody business be launched?
The joint cryptocurrency custody business between Hana Bank and BitGo is expected to be launched in the second half of 2024. More specific details regarding the launch will be announced closer to the date.