Giant Korean Bank May Get Into Crypto, Could Catalyze Bitcoin Rally
Massive Institution Looks to Store Crypto
Reported by CoinDesk on Tuesday, Bitcoin (BTC) and other digital assets may soon be stored by KB Kookmin, South Korea’s largest bank. Citing a report from its Korea branch, the outlet revealed that on June 10th, the financial institution and a local blockchain upstart Atomrigs Consulting signed an agreement on the matter of custody.
Atomrigs’ research and development department are developing Lime, a system that secures digital assets, including traditional cryptocurrencies, using “secure MPC technology”. With this agreement, Kookmin will be joining hands with the firm to combine Lime and its experience storing and managing traditional and new assets. The report didn’t specifically mention Bitcoin, Ethereum, or any other traditional cryptocurrency, but Korean consumers are known to have adopted these assets en-masse.
While it is unclear if this service would be focused on institutions or consumers, this is the latest in a string of pro-adoption news in the Korean crypto industry.
Kakao, which is kind of like the equivalent of Facebook in North America, is soon expected to integrate a cryptocurrency wallet into its messaging application, used by millions, if not tens of millions in the nation. The social media firm is also working on an array of blockchain applications slated for a consumer audience.
Institutional Involvement to Propel Bitcoin Higher
The news regarding Kookmin accentuates that institutions, both in America and abroad, are looking to get involved in the crypto space, despite 2018’s decline. Across the pond, you have massive asset manager Fidelity Investments, E*Trade, Ameritrade, the New York Stock Exchange, and many others embroiled in traditional finance looking to take the plunge.
This excitement by way of corporations is what many analysts believe will propel Bitcoin to five-digits yet again. In an interview with Bloomberg, Jehan Chu, a co-founder of Kenetic Capital, explained that with Facebook, JP Morgan, Fidelity Investments, and other households names in Silicon Valley and on Wall Street endorsing the technology behind crypto assets, BTC should begin to rally. These developments, in his eyes, will drive “mind share and drive adoption”.
In a similar comment, BitPay’s Sonny Singh explained that the ongoing Bitcoin rally is being driven by infrastructural developments, like AT&T accepting Bitcoin and E*Trade looking to launch cryptocurrency trading.
But as to how far this involvement can bring Bitcoin higher is not known.