Largest South Korean lender to develop crypto custody service

South Korea’s largest bank, KB Kookmin, has teamed up with blockchain start-up Atomics Lab to develop a digital asset custody offering, industry website Coindesk has reported.

According to a report from Condesk Korea, the two companies signed a strategic business agreement on June 10. The firms want to develop solutions that combine Atomics Lab’s technology, which focuses on securing digital assets, and the bank’s internal control infrastructure and information protection technologies. The companies’ collaboration will involve developing digital asset protection technology and smart contract applications. Kookmin and Atomics Lab also want to explore new businesses in the digital assets space and there could also be cooperation on a blockchain network.

“We hope that the two companies will grow together by discovering innovative services in the field of digital asset management,” a spokesperson for Kookmin said, as quoted by Coindesk. “We will continue to cooperate with various technology companies in the digital ecosystem to expand our offerings.”

The involvement of a reputable financial institution in crypto could have a major impact on the sector, the report notes. The crypto market has already received significant boosts in recent months on the back of reports about J.P. Morgan and Fidelity Investments’ crypto projects. Fidelity’s crypto arm, Fidelity Digital Asset,s started its own custody solution for Bitcoin in March and will reportedly start a BTC trading service later this year.

South Korea is one of the most important regions for the digital currency sector. During the cryptocurrency boom in 2017, Korean traders were among the most active on the market, while exchanges operating in the country, such as Bithumb and Upbit, were among the leading crypto trading platforms in terms of trading volume. The growing crypto fever prompted regulators to impose stricter rules on the sector, in an effort to reduce speculation and crypto related money laundering.

Featured image: Positiffy / Shutterstock.com

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