South Korea’s Biggest Bank U-Turns on Crypto With Custody Service

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South Korea’s largest bank by assets, KB Kookmin, has partnered with a cryptocurrency startup to develop custody solutions.

South Korea’s Kookmin U-Turns on Crypto

Reported by local media outlet Business Korea June 11, Kookmin will now work with local company Atomrigs Lab, which is active in digital asset protection.

The move marks a decisive change of tack for Kookmin, which until recently appeared to have a hands-off stance on cryptocurrency in general.

South Korea continues to be a hotspot for cryptocurrency activity in areas such as trading, with mixed regulatory signals failing to dampen consumer enthusiasm this year.

“We hope that the two companies will grow together by discovering innovative services in the field of digital asset management with this agreement,” Lee Koo-il, CEO of Kookmin Bank, meanwhile commented after inking the partnership on Monday.

We will expand the digital ecosystem through cooperation.

Crypto, Blockchain Options On Radar

The exact outcome of the joint development plans with Atomrigs remains less certain but incorporates a wide range of technologies associated with both cryptocurrency storage and Blockchain.

According to Business Korea, the two will “jointly study digital asset protection technology and smart contract application methods… and opted to actively explore new business opportunities in the field of digital assets.”

“The company will also develop digital asset management services that combine Atomrigs Lab’s technology with Kookmin Bank’s internal control infrastructure and information protection technologies,” the publication continued.

In addition, the two companies have agreed to cooperate with each other in the creation of a bridge ecosystem between the blockchain network and finance.

World’s No.1 Insurer Inks Crypto Custody Insurance

Last year, Kookmin had come under fire from South Korea regulators over its poor anti-money laundering procedures regarding transactions originating from cryptocurrency sources.

Worldwide, banks offering crypto custody solutions meanwhile looks set to become an ever-increasing trend.

Attempts thus far have taken various forms, such as Dutch lender ABN Amro’s in-house crypto wallet, which controversially stipulates the bank holds investors’ private keys.

This week, the world’s second-larger insurer Metaco announced it was now offering crypto custody insurance via a deal with Aon.

“Insurance is an essential requirement for banking clients and METACO is excited to be able to facilitate insurance for our clients through the leading broker for crypto insurance solutions,” Metaco CEO and founder Adrien Treccani commented in an accompanying press release.

As Bitcoinist reported, institutional investment in Bitcoin 00 and other cryptocurrencies are expected to constitute a major phenomenon in the coming years. In May, a survey by pro-crypto asset manager Fidelity Investments revealed half of investors considered crypto a worthy sector for their portfolio.

What do you think about KB Kookmin Bank and Metaco’s moves? Let us know in the comments below!

Images via Shutterstock

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