Sat. Feb 4th, 2023

The banking sector is showing interest in the digital asset trust (custody) business to find new food. As the heat of investment in virtual currency has heated up, banks have claimed to be “asset safekeepers.” The construction of a new portfolio that detects changes in the times is accelerating.

According to the banking sector on the 21st, Daegu Bank made a strategic investment in Infinite Block, a digital asset custodian company, on the 12th. Daegu Bank is the first local bank to enter the field. Infinite Block is developing a blockchain-based fintech platform that can conveniently operate and manage digital assets. It secured a 14.9% stake in Infinite Block of Daegu Bank. Under the Banking Act, it is limited to not exceeding 15%, so it is a scraped stake as much as possible.

Prior to Daegu Bank, local commercial banks entered a trust business. Kookmin Bank established blockchain investment company Hashed and blockchain company Hatch Labs and Korea Digital Asset (KODA) in November last year. KODA began developing a virtual asset financial model through collaboration in the digital asset field. Shinhan Bank also invested 500 million won in KDAC for research and development of solutions that provide digital asset custom service. KDAC is a joint venture between Cobit, Bloco, and Pairs Square Lab.

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Woori Bank has established DiCustody, a company specializing in digital asset customization, in collaboration with CoinPlug. DiCustody aims to provide a company’s professional asset management platform service. Currently, it is pushing for a central bank-issued digital currency (CBDC) pilot project. Hana Bank has also started to establish a CBDC pilot system. Nonghyup Bank invested its stake in Cardo, a company specializing in digital asset customization. Nonghyup Bank also signed a business agreement with Galaxy Money, Korea Information and Communication, and Hexland for digital asset businesses.

The digital asset custom business in the banking sector is only a strategic investment or business partnership. This is due to the financial authorities’ conservative position and unclear regulations. Nevertheless, banks are trying to preoccupy the market and build a foothold in the study business. This is because it has been selected as a rising business in terms of profit portfolio management. Investment funds have recently been flocking to cryptocurrency, and it is also a field that needs to be studied for digital transformation.

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