Banking Capital markets News

South Korea’s NH Bank creates digital asset consortium

digital assets

Today South Korea’s Nonghyup Bank (NH Bank) announced it is collaborating with blockchain firm Hexlant and Pacific Law for digital assets. Together the group plans to explore new business models, digital asset custody and digital asset security, as reported by FinTech Times Korea.

This follows recent changes in South Korean laws which come into force at the end of March 2021 that require anti money laundering procedures for digital assets.

NH Bank is part of NH Financial Group, which is wholly owned by the National Agricultural Cooperative Federation. In 2018 it had deposits of 316 trillion Korean Won ($266 billion). To date, one of its main interests in blockchain has been digital identity. It recently launched a Mobile Employee ID based on distributed identity technology from the Initial DID Association. It’s also a member of the DID Alliance.

Pacific Law (Bae, Kim & Lee) is one of the biggest law firms in South Korea. And blockchain firm Hexlant has a background working with cryptocurrency startups, but also has expertise in digital asset custody and security. It initially started working with large corporates to educate them. It says its software is used by Shinhan Bank and Samsung Blockchain.

One of Hexlant’s biggest claims to fame is helping to develop the Klaytn wallet for the blockchain founded by South Korean social networking giant Kakao. Samsung even released a KlaytnPhone.

Earlier this year, Korea’s second largest bank, Shinhan Bank, partnered with software firm Hancom to build a blockchain-based digital asset management platform. Hancom is well known for its Hangui Office word processing application, which is hugely popular in the country. But it also has a blockchain and security track record.