South Korean Woori Bank To Start Providing Crypto Custody Services

South Korean Woori bank will start providing crypto custody services and will enter the digital asset custody services market faster than expected so let’s read more in our latest cryptocurrency news today.

One of the biggest financial institutions, South Korean Woori Financial Group will start offering crypto custody services to its clients and its banking unit will lunch the initiative in a partnership with the fintech solutions provider Coinplug Inc. According to a report from the Korean Economic Daily, Woori Bank will be the next Korean bank to enter the DACS market and the institution teamed up with the BTC-focused fintech solutions provider Coinplug to set up a custody joint venture. The project dubbed named D-Custody will be incorporated by next week and Coinplug will be the main shareholder while the bank will have less input. An official from the bank said:

“In overseas markets, the digital asset custody has become a successful, established practice among the new services offered by the banks.”

At its core, digital asset custody allows providers to store crypto on behalf of individuals and companies. There has been a surge in demand for this service in South Korea as a huge number of local firms starting to trade and holding various types of virtual currencies. For example, the biggest bank in South Korea, KB Kookmin Bank entered the market at the end of 2020 by establishing Korea Digital Asset Co and the Shinhan Bank launched some initiatives earlier by becoming a new investor of Korea Digital Asset Custody Co. As reported, major banks in the biggest economy the US started offering crypto custodian services and one of the latest ones to join the trend was Coewn Inc.

The multinational investment bank partnered with the Standard Custody and Trust co to provide custody services with the financial giant with $12 billion in AUM revealed that the innovation will be available for the hedge funds and managers. The CEO of Cowen Jeffrey Solomon said:

“The demand is clearly here. We’re going to be able to help a lot of our institutional clients get over the hump and start trading digital assets in the not-too-distant future.”

At the start of 2021, the oldest American bank BNY Mellon announced it will provide crypto-related services to the customers with the New York-based institution said it will hold, issue and transfer BTC and other assets on behalf of institutional clients.