One of South Korea’s major financial institutions – Hana Bank – unveiled plans to introduce digital asset custody services starting. This announcement was made during Korea Blockchain Week in Seoul by the bank, which boasts total assets worth $448 billion.

For the initiative, Hana Bank has teamed up with Palo Alto-based digital asset custody provider BitGo.

Hana x BitGo

The strategic collaboration between Hana Bank and BitGo is anticipated to bring significant advancements in digital asset custody services, boosting the market in South Korea.

As part of the deal, Hana Bank and BitGo will jointly foray into the digital asset custody (DAC) space coinciding with the latter’s establishment of a corporate presence in South Korea. The two entities will look for collaboration opportunities, including the possibility of a joint venture and leveraging their individual strengths in security solutions, DAC technology, and the financial services portfolio provided by Hana Bank.

BitGo CEO and co-founder Mike Belshe added that the company will double down on ramping up transparency and safety of the South Korean digital asset industry through this partnership.

Confirming the development, a Hana spokesperson was quoted saying,

“We expect to contribute to raising trust and consumer protection on the domestic digital asset market by promoting the DAC sector with our global partners.”

South Korea Crypto Ecosystem

The collapse of the TerraUSD stablecoin project reverberated globally, but the most significant impact was felt in South Korea as tens of billions evaporated.

Hashed, a Korean venture fund, is said to have incurred losses of approximately $3 billion during the market crash. Subsequently, the presidential administration, which was previously supportive of cryptocurrencies, began to exhibit significantly reduced enthusiasm. However, crypto trading and investment have remained unfazed in the country.

A recent report suggested that South Korean Gen Zs preferred XRP the most in their portfolios. Despite being embroiled in legal challenges, XRP comprised 20.7% of their investments, exceeding the combined 17.5% allocation for Bitcoin and Ethereum.

South Korean individuals in their 20s were found to exhibit an inclination towards “aggressive” investing, as opposed to investors from other age demographics in the country.