Woori Bank, the South Korean financial institution, enters the market for DACS (cryptocurrency custody services).
Woori Financial Group will begin offering cryptocurrency custody services to its clients. It is one of the largest South Korean financial institutions.
Related reading | Nifty’s Inc. Partners With Warner Bros To Deploy Social NFT Platform
The financial institution’s banking unit – Woori Bank will partner with the fintech solutions provider to launch this initiative. This fintech’s solution provider is known as Coinplug Inc.
Woori Bank Adopts Cryptocurrency
Korean Economic Daily report States that Woori Bank is the next bank in South Korea to join the DACS market. The institution joined Coinplug Inc, a Bitcoin-focused financial technology provider, to establish a Joint Venture (JV).
The name of the project is D-Custody and will be integrated early next week. The ownership agreement foresees that Woori Bank will contribute less while Coinplug will become the main shareholder.
A Woori Bank official said digital asset custody has been more successful among recent services provided by banks in the overseas market.
Investors are in a panic as the cryptocurrency market keeps following a downtrend | Source: Crypto Total Market Cap on TradingView.com
Basically, digital asset custody allows its vendors to reserve cryptocurrencies for businesses and individuals in their absence.
There is now an increase in demand for digital asset custody services in South Korea. This is because most local businesses now own and trade different types of virtual currencies.
Related reading | Binance CEO Changpeng Zhao says, “Compliance is a journey.”
For example, KB Kookmin Bank, the largest bank in the South today, has joined the digital asset custody services (DACS) market. The bank entered DACS at the end of 2020 by forming KODA (Korea Digital Asset Co).
Shinhan Bank also adopted the same idea earlier this year and became the strategic investor of Korea Digital Asset Custody Co (KDAC).
The expansion of cryptocurrency custody services
The major banks in the United States – the largest economy have also started providing cryptocurrency depository services, as reported recently. Cowen Inc is now identified as one of those big banks to join the trending offering.
Together with Standard Custody & Trust Co., the multinational investment bank began providing so-called “institutional grade” custody services. The financial giant and $ 12 billion in assets under management revealed that this innovation would be available to managers and hedge funds.
Cowen-Jeffery Solomon CEO Reveals Bank Decision ‘In a short time we will be helping many more of our institution clients overcome challenges and start digital asset trading. The demand is there.
Related reading | Russia plans to seize illegally acquired cryptocurrencies
BNY Mellon, the former U.S. bank, announced earlier this year that it would offer cryptocurrency-related services to its customers.
The New York-based institution explained that it will issue, hold and transfer BTC and other cryptos in honor of its clients in the institution.
Featured image from Pixabay, chart from TradingView.com