In Korea country’s third-biggest bank joins hands to set up the custody for digital assets. Now crypto traders can use this channel for the transfer of their assets. Woori Bank has followed the path set up by Kookmin Bank and Shinhan Bank. A report published in The Korea Economic Daily stated that Seoul- based financial company, Woori Group has joined forces with (DACS) market, as digital assets custodian.
The report has confirmed that Woori Bank is launching digital currency in collaboration with Coinplug Inc, a blockchain developer. This currency is protected by a joint venture struck between Woori Bank and (DACS) market. This joint venture is named as D-Custody and the new digital currency is expected to be launched next week. Coinplug will be the biggest stakeholder in this joint venture followed by the Woori Bank.
The bank’s officials said that digital asset custody is an essential practice when new services are being offered. In Korea, domestic companies are not allowed to sue crypto exchanges for the trading of their digital assets. The only option for them is to save these assets by themselves. So, this is quite a dangerous exercise. As the result, most banks are interested in Joint Ventures with DACS.
However, the well-reputed Korean banks are prohibited by the government from jumping into the DACS market directly. That is the reason these banks are getting tied in Joint Ventures. These Joint ventures make banks partial partners in establishing any new digital currency.
Woori Bank is not the first institution that has joined the forces to launch digital assets. Previously, Shinhan Bank formulated a joint venture with DACS. However, NH Bank last week also showed their interest join any blockchain development brand. NH Bank has shortlisted Klatyn’s Blockchain Governance Council to launch Klatyn-powered digital assets.
The top management of these banks is fully aware that any direct investment in the crypto market can be suffered from intense volatility in the market. However, investing in digital custody businesses is not just more stable but also provides controls over the business’s decisive factors. The involvement of three of the country’s largest banks has made digital assets trading is more reliable and transparent. It has also boosted the credibility of crypto trading. As the result of this rapid legislation a large if traders have started to invest in the digital market.
Despite the monitory authority, big three the crypto market’s volatility remains unmoved. This proves that all those analysts who suggest that the government’s involvement can control the volatile nature of the market are wrong in their judgment. Authorities can bring transparency, but they cannot control the digital trends in the market.