South Korean Bank Plans to Launch A Cryptocurrency Custodial Service

The COVID-19 situation has put global economy on halt as central banks across the globe are now busy in controlling the economy downfall triggered by the Coronavirus pandemic.

Some banks across the globe are now considering expanding their services in the cryptocurrency sector as well! South Korea’s largest bank KB Kookmin is all set to launch its cryptocurrency custodial service for digital currencies like Bitcoin (BTC) and Ethereum (ETH).

As per the report from local news publication Daily Today, the bank has filed a trademark application for KBDAC while referring to a proposed Digital Asset Custody subsidiary by the end of January 2020.

It means that the application will take around 6 to 12 months to be considered. Besides, the publication also notes that the application includes additional provisions like advising on crypto investments and selling of crypto assets.

The KB Kookmin bank has always been actively seeking new blockchain projects in the industry. By venturing in the crypto space, the bank is now willing to expand its scope of financial services. Besides, the bank can also launch several crypto-based financial products to manage and receive digital assets in investment funds.

The publication also reported that KBDAC is something that the bank decided to do with blockchain startup Atomrigs Lab in June 2019. However, the bank has declined to comment anything on the specific launch date of its blockchain platform.

Last year, the KB Kookmin bank and Atomrigs Lab partnered to develop a cryptocurrency custody service. Atomrigs Lab develops a product that helps in securing digital assets using the multi-party computation (MPC) cryptography technology.

Instead of having a fixed private, this technology generates random key shares. These key shares are then computed and stored separately for deriving an output that can collectively authorize a transaction.

KB’s entry in the crypto space will give a big boost to South Korea’s crypto ecosystem. Besides, when other Asian economies like China and India are working on digital currency projects.