Woori Financial Group To Provide Cryptocurrency Custody Services

Woori Financial Group, one of the leading banking groups in South Korea, has announced that it will establish a digital asset custody joint venture with Korean blockchain developing company Coinplug.

According to the Korea Economic Daily reported on July 11, Woori Bank, a subsidiary of Woori Financial Group, plans to establish a digital asset custody joint venture (JV) called D-Custody in Coinplug Inc., a South Korean financial technology solution provider. Coinplug is the largest shareholder, and Woori Bank is the second-largest shareholder.

This is South Korea’s third company participating in the digital asset custody service (DACS) track after KB Financial Group and Shinhan Financial Group.

Sources reveal that the joint venture will be established as early as next week.

Due to the digital currency market rise, the demand for digital asset custody services has increased. More Korean companies have begun to develop various services related to cryptocurrency to achieve business diversification or meet the investment objectives of different investors.

An official of Woori Bank said that:

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

Although Korean law currently prohibits banks from directly entering the DACS market, large banking groups can still cooperate with cryptocurrency-related companies to co-found and focus on providing digital currency asset custody services to provide customers with safe storage and management of their digital assets, including cryptocurrency services.

As reported by Blockchain.News on July 23, Kookmin Bank, the largest commercial bank in South Korea, would start offering Bitcoin custody services through a new partnership with blockchain venture fund Hashed.

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