Today Shinhan Bank announced an investment in Korea Digital Asset Trust (KDAC), a consortium of startups that provides a digital asset custody solution. KDAC was formed in March 2020 by the Korbit cryptocurrency exchange, enterprise blockchain firm Blocko and research firm Fair Square Lab. Shinhan has an existing investment in Blocko, which developed the Aergo enterprise blockchain protocol.
The Shinhan KDAC deal was signed in October 2020 to partner in developing the solution and the investment.
According to Yonhap News, a Shinhan Bank official said, “Digital asset custody is an area where you can make good use of the bank’s compliance capabilities and custody experience.”
He continued that the bank will “proactively respond to the rapidly changing digital asset market due to the implementation of the Special Financial Information Act (Special Law).” The Act, which covers digital assets, comes into force in March.
So far, KDAC has developed a cold wallet solution with plans for a hot wallet offering and DeFi applications.
Last year the technology division Shinhan DS signed a deal with major Korean IT firm Hancom to develop digital asset solutions.
And two months ago, fellow Korean bank KB Kookmin launched a digital assets joint venture with Hashed and Haechi Labs, KODA (Korea digital assets).
Meanwhile, numerous banks are launching digital asset solutions elsewhere, including DBS Bank in Singapore, Standard Chartered and Northern Trust in the UK, and BBVA in Switzerland.