Korea's Biggest Bank Is Preparing to Custody Digital Assets

KB Kookmin, the largest bank in South Korea, is preparing launch a digital asset custody offering.

According to a report from CoinDesk Korea, the institution is teaming up for the effort with blockchain startup Atomrigs Lab, with the two entities signing a strategic business agreement on June 10.

Atomrigs Lab is developing a product called Lime that secures digital assets such as cryptocurrencies using secure MPC technology.

Kookmin and Atomrigs Lab will develop digital asset custody services that combine Atomrigs Lab technology and KB Kookmin Bank's internal control infrastructure and information protection technologies.

The firms aim to collaborate on the development of digital asset protection technology and smart contract applications, as well as exploring new businesses in the digital assets space. Cooperation on a blockchain network and the creation of a related ecosystem within finance are also on the cards.

A move by such a major bank into the digital asset trust business could have a big impact on the cryptocurrency industry, according to the report. A financial institution that already has a high degree of credibility could potentially help eliminate concerns over security of customers' funds and suspect exchange operators.

"We hope that the two companies will grow together by discovering innovative services in the field of digital asset management," a representative of the bank said. "We will continue to cooperate with various technology companies in the digital ecosystem to expand our offerings."

Kookmin Bank has designated its core technology as "ABCDE" (for AI, blockchain, cloud, data and ecosystem) and, since last year, has been promoting digital transformation throughout the company, CoinDesk Korea writes.

KB Kookmin Bank featured image via Shutterstock; agreement signing image courtesy of the bank