Approved: Major Bank Receives Greenlight for Crypto Custody

March 28, 2020 6:46 PM UTC

Cryptocurrency custody is a booming business which is presently dominated by cryptocurrency startups. As digital assets receive increasing legitimacy, with examples like a major Italian bank supporting Bitcoin trading, financial institutions are eager to dip into the custody pie. Governments across the world have requests, from banks, for approval of crypto custody services, and it seems South Korea is taking the lead in this segment. 

KB Kookmin Bank, South Korea’s largest bank, is looking to introduce a crypto custody service in the upcoming days. As reported by local authorities, on Jan 31, the bank has filed an application for the KBDAC trademark (KB Digital Asset Custody). The new services will support cryptocurrency trading and investment. 

The Korean Intellectual Property Office and KB Kookmin Bank collectively applied an application for the trademark. The bank is hoping to use trademark in several various sectors, all associating with the cryptos. The services add to the KB suite involve investment consultation, asset management, and crypto trading like Bitcoin and Ethereum. The service also supports the settlement of crypto transactions with fiat currency.

Collaboration with Atomrigs Leads to Secure Ecosystem

In 2019, the Kookmin Bank partnered with Atomrigs Lab to build a custody service that protects crypto using MPC (multi-party computation). The technology produces arbitrary key sections instead of an original private key. Further, to preserve the cryptocurrencies, these keys will be placed separately.

Lee Woo-yeol, CEO of KB IT group, stated during the collaboration time:

“We hope that the two companies will grow together through discovering innovative services in the digital asset management field through this agreement. We will expand the creation of the digital ecosystem through cooperation.”

Rather than be disrupted by blockchain technology, most major banks are seeking to adopt blockchain technology as a means to expand their services and generate new sources of revenue as, despite the visage of decentralization, most blockchain-aware users have readily opted for centralized solutions over decentralized ones. Banks, the leaders in centralized financial solutions and asset management, could soon be the go-to solution for cryptocurrency services, contingent upon sufficient government approvals.

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