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- BitGo, a leading global digital asset custody firm, is expanding its footprint in South Korea through key partnerships.
- The company’s regional arm, BitGo Korea, has welcomed substantial investments from SK Telecom and Hana Financial.
- “Our collaboration aims to set the foundation for institutionalizing cryptocurrency within South Korea,” stated BitGo CEO Mike Belsh during Korea Blockchain Week 2024.
Explore how BitGo’s strategic partnerships with SK Telecom and Hana Financial are set to revolutionize crypto custody in South Korea.
Strategic Partnerships to Propel Market Expansion
BitGo has secured significant partnerships with two of South Korea’s major industry players, SK Telecom and Hana Financial. Hana Financial, one of the largest financial institutions in the country, has taken a 25% stake in BitGo Korea, while SK Telecom has acquired 10%. BitGo Korea serves as a joint venture with Hana Bank, which was established earlier this year following a partnership that began in September 2022. These collaborations are not only strategic investments but also signal a strong commitment to advancing the cryptocurrency landscape in South Korea.
Supporting Infrastructure for Crypto Custody
The collaboration between BitGo and its partners leverages their respective strengths—Hana Financial’s robust market position and SK Telecom’s technological expertise. Hana Financial, the third largest financial group in South Korea with approximately $441.4 billion in assets, aims to enhance the local crypto sector through essential custody services, citing reliability as a cornerstone of their initiative. Meanwhile, SK Telecom is contributing its advanced capabilities in user authentication, security, and identity verification, crucial for ensuring that BitGo’s services are user-friendly and secure. This partnership paves the way for BitGo Korea as it aims to receive licensing as a virtual asset service provider in South Korea.
BitGo’s Market Position and Future Prospects
Founded in 2013, BitGo has positioned itself as a leader in digital asset custody, currently holding around $70 billion in assets under management. Notably, BitGo’s infrastructure handles approximately 20% of all bitcoin traded on-chain, reflecting its integral role in the cryptocurrency ecosystem. With the establishment of BitGo Korea, the firm is poised to play a pivotal role in shaping the future of institutional cryptocurrency in South Korea, aiming to cater to a rising demand for secure digital asset custody solutions.
Conclusion
The recent investments from SK Telecom and Hana Financial into BitGo Korea mark a significant milestone in the maturation of the cryptocurrency market in South Korea. As BitGo works towards acquiring necessary regulatory licenses and expanding its service offerings, the collaboration stands to benefit the crypto community by fostering trust and reliability in digital asset management. In the evolving landscape of cryptocurrencies, these partnerships not only signify growth for BitGo Korea but also promise a more institutionalized approach to crypto custody in the South Korean market.