It has been argued that the bank’s digital asset custody service will be called “digitization” as a new business in line with the current trend.
On the 1st, NH Bank, Bae, Kim & Lee LLC and Hexlant, a blockchain technology research institute, held a seminar on the subject of’ ‘Special Act Conference: Virtual Asset System Entry’. Ryu Chang Bo, part director of NH Bank, announced the bank’s digital asset custody service.
Ryu predicted that digitization will also change the banking industry. In particular, he saw that the “Special Act on the Reporting and Utilization of Specific Financial Transaction Information” brought virtual assets into the system, creating opportunities for new business. “I think the revision of the Special Act is somewhat consistent with the real-name financial system. Through this, it is expected to be able to go up to the standardization and taxation standards, so we intend to create a service as a way to move within the existing real-name system. We are trying to provide Custody services mainly to institutional investors.”
NH Bank’s strengths include its existing banking service infrastructure, excellent security system, and experience in operating financial services in connection with exchanges (real name verification deposit and withdrawal account issuance service). However, he took a negative position on the issuance of additional real-name and withdrawal accounts. He said, “The bank is not profitable enough to issue an account with risks related to the exchange, so it is a negative position to issue additional accounts.”
He said that he would like to do something about building an additional collaboration model with the exchange. “The bank cannot control the escape of cryptocurrency from the exchange to an unidentified wallet. Banks believe that the transfer of digital assets to wallets that are not verified by name should be prevented. I want to proceed PoC of this function” he said.
He said that NH Bank is also considering a service that can contain CBDC when it is issued. Ryu said, “I don’t think it’s appropriate for Bank of Korea to issue CBDCs and make apps that store them. First of all, after providing custody to institutional investors, we expect to be able to do business to store CBDC if it’s issued.”
