The securities arm of South Korea’s second-largest trading conglomerate will receive cryptocurrency – and will partner with a local commercial bank as part of its efforts.
According to media The Public, SK Securities, part of SK’s business empire, will launch a “digital asset custody company” in cooperation with DGB Daegu Bank, a regional commercial bank based in Daegu. The two parties acquired a 9.7% stake in a start-up digital incubator called Infinite Block for an undisclosed amount.
The move is the first cryptocurrency-related merger and acquisition of a South Korean securities firm. SK Securities added that it will seek to launch security token offerings (STOs) and non-fungible tokens (NFTs). The company also wants to start offering crypto ‘management services’.
SK Securities CEO Kim Shin was quoted as saying that the “blockchain market” is currently going through a crisis due to the “Terra/Luna Incident” and multiple hacks.
Kim said Securities now “plans to create a platform that will allow companies to safely and easily operate and manage digital assets.”
Infinite Block describes itself as a fintech group backed by blockchain technology that is developing digital finance infrastructure for both traditional and emerging financial markets.
DGB Bank President Daegu Lim Seung-hun was quoted as saying:
This investment is significant as it is the first time a local regional bank has moved into the digital asset market. It is a market with great potential. We will work with excellent companies and provide quality services to our clients.”
This news comes on the heels of crypto-related developments from one of SK Securities’ biggest competitors – Hyundai Motor Securities.
Yesterday, Cryptonews reported. com that Hyundai Motor Securities has struck a deal with cryptocurrency exchange Bithumb. The agreement will allow users of Hyundai Motor Securities’ asset management platform to check the status of their crypto holdings, as well as monitor token market prices.