March 29, 2024

Bank of South Korea Launches Digital Asset Storage Service

Bank of South Korea Launches Digital Asset Storage Service

The largest commercial bank in South Korea, Kookmin Bank (KB), plans to launch banking services in the near future.storage of digital assets, reports KoreanDigital Today publication. According to information received from bank officials, KB has filed an application to register KBDAC with the Korea Intellectual Property Office (the country's patent office).

Customer service extension

KB Digital Asset StorageAsset (KBDAC) will provide a range of services, including investment, consulting, exchange, storage, settlement, work in the OTC market (OTC), trust and other services.

Last June, KB announced that it wouldCollaborate with Atomics Lab to develop digital asset storage services that integrate Atomics Lab technology into KB’s internal control infrastructure and information security technologies.

Atomics Lab, led byCEO Wu-Hyun Young, is Korea’s leading blockchain technology development company and has its own digital asset research solution (asset management). Atomics Lab's innovative technology is characterized by the use of the “multi-way secure computing” method for separating and storing fragments of private keys.

Hackers will not be able to steal digital assets with onlyone private key, and the owner can restore it even if the private key is lost. This is guaranteed by Atomics using secure virtual asset management technology.

Kookmin Bank plans to establish a subsidiaryunit, the main activity of which will be the storage of digital assets. Currently, active preparations are underway for launching financial services and products that use virtual assets, such as Bitcoin and Ethereum, as investment contributions for management or for making direct profit from the growth of the rate.

This is the first in the Korean banking system.traditional bank entering the cryptocurrency market. To implement the new service, Kookmin Bank must also obtain permission from the regulators: the Financial Services Commission (FSA) and the Financial Supervision Service.

Experts note that the successful launch of a cryptocurrency depository by the bank may facilitate the entry of the closest competitors to the banks Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank.

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