Korean Shinhan Bank’s digital asset custody firm Korea Digital Asset Trust (KDAC) has signed its first clients, including NXC, the holding company for Tokyo listed game developer Nexon, reported NewsPim.
With the rise in popularity of cryptocurrencies, there is a new opportunity in banking to manage digital assets, much like traditional wealth management.
Last March, KDAC was founded by digital asset exchange Korbit, blockchain company Blocko, and research firm Fair Square Lab. Shinhan joined as a strategic investor in October.
The initial asset custody is focused on cryptocurrencies, but the organization has plans to manage other forms of digital value, such as non-fungible tokens (NFTs).
The firm’s first client, NXC, acquired Korbit digital asset exchange in 2018, 80% of European Bitstamp, and a subsidiary purchased $100 million worth of Bitcoin just last month.
Two other clients are already lined up to use KDAC’s service. Alpha Asset Management actively invests in financial digital innovation companies and KOSDAQ listed JC Hyeon Systems.
Meanwhile, KODA, a direct competitor of KDAC founded by Kookmin Bank, recently landed its first client, the online gaming company Wemade. Other bank-associated digital asset custody solutions include Standard Chartered’s Zodia and ING’s Pyctor.
As for Shinhan Bank, the company is working with LG CNS on a platform for central bank digital currencies independently from the central bank itself, which might be a factor in Shinhan’s active participation in digital asset custody. The bank also recently joined Hedera’s network governing council.