Korea’s Kookmin Bank launches institutional digital asset custody KODA

Korea’s Kookmin Bank launches institutional digital asset custody KODA

Korea’s largest bank, Kookmin Bank (KB) has unveiled KODA, the institutional digital asset custody solution based on technology taken from blockchain firm Haechi Labs and in partnership with Hashed. The offering will connect selected over-the-counter (OTC) cryptocurrency exchanges and currently supports three cryptocurrencies, namely Bitcoin, Ethereum and KLAY.

KLAY is a token for the KLAYTN blockchain network, which was created by Korea’s leading social network, Kakao and is preparing to support a possible CBDC (central bank digital currency). In addition to safeguarding keys, KODA also aims at supporting staking services. While the firm is seeking to assess other assets like nonfungible tokens (NFTs), including gold, real estate, and art, during the first half of this year.

It is worth noting that Korea’s leading digital asset exchanges have not been unable to withdraw or deposit Korean won from corporate accounts. While others active in the Korean sector, such as Shinhan Bank and KLAYTN, are exploring CBDC solutions.

Sources state that in addition to connecting to OTC trading and providing custody, KODA will perform anti-money laundering procedures like screening withdrawal addresses and deposits. The solution includes accounting, legal, and tax advice in association with professional services firms. The bank has plans for additional collaborations for digital asset insurance, fund management, settlement and lending.

Notably, numerous institutions across the globe are launching similar services. BNY Mellon, one of the world’s largest custodian bank, is planning to deliver custody services by late 2021. While Dutch bank ING has launched a decentralized digital asset solution called ‘Pyctor’ for safekeeping and post-trade.

Pyctor was developed in collaboration with several significant partners, including leading global custodians, Citi, State Street, and BNP Paribas Securities Services. Meanwhile, as a broader services, Spanish bank BBVA owns a cryptocurrency service for its Swiss wealth clients.

Source Credit: https://www.ledgerinsights.com/kb-kookmin-bank-live-institutional-digital-asset-custody-koda/