Financial authorities have announced plans to allow corporations to invest in virtual assets, and as they accelerate the transition into regulation, commercial banks are moving quickly. Virtual assets have been a field that commercial banks have largely ignored, but they become an undeniable market once the corporate market opens.
According to the financial sector on the 26th, the five major domestic commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup) are all increasing their connections with the virtual asset industry. Hana Bank started a certification service with Upbit, the largest domestic virtual asset exchange, on the 14th. To conduct transactions in won at the exchange, two-channel authentication is required, and this service enables the use of Hana Bank's certification.
Starting next month, KB Kookmin Bank will take over the real-name verification account for the domestic virtual asset exchange Bithumb. Although there is still about a month left before the partnership with KB Kookmin Bank begins, the daily number of demand deposit account openings has increased by 3 to 4 times. Shinhan Bank has been responsible for the won accounts of the exchange Korbit since 2018. Taking responsibility for won accounts at virtual asset exchanges not only secures a large amount of low-cost deposits but also attracts new customers.
NH NongHyup Bank, which previously partnered with Bithumb on won accounts, is focusing on innovative financial services through blockchain as a key direction this year. NH NongHyup Bank is collaborating with blockchain technology companies such as Fireblocks and Patioor. Woori Bank announced that it launched its own blockchain-based non-fungible token (NFT) wallet service this month and plans to support won accounts at the exchange.
The corporate virtual asset investment market provides new opportunities for commercial banks. Since the implementation of the Specific Financial Information Act in 2021, customers wishing to trade virtual assets in won, regardless of whether they are individuals or corporations, must establish a partnership with banks for real-name verification deposit and withdrawal accounts. Until now, virtual asset investment was only available to individuals, so the entrusted funds were not substantial, but corporations are expected to bring a different scale.
The most attractive collaboration partners for banks regarding virtual assets are undoubtedly the virtual asset exchanges. By entering into real-name account contracts with exchanges, banks can secure new account-opening customers and gain profits from won deposit and withdrawal fees. Additionally, customers who use the exchange will automatically sign up for the bank, making it easy to attract new customers.
In particular, the entrusted funds coming from exchanges constitute low-cost deposits that significantly enhance bank profitability. Low-cost deposits, including virtual asset deposits, are mostly operated in the form of regular deposit accounts, allowing banks to secure large deposits at lower interest rates than savings accounts. Recently, banks and savings banks have also joined the joint accounts to secure low-cost deposits.
Commercial banks are leveraging their decades of corporate sales competitiveness, various marketing partnerships, and new business investment capabilities to collaborate with exchanges. K Bank, which is responsible for Upbit's won accounts, and Kakao Bank, which is responsible for Coinone's won accounts, are also moving quickly. K Bank has announced that it will concentrate efforts this year on securing additional corporate accounts to continue its collaboration with Upbit, the number one virtual asset exchange in the country.
K Bank has been providing virtual asset corporate account services to national agencies earlier and emphasizes that it has 49 real-name accounts for national agencies as of the end of last year, as well as over 6,000 corporate accounts. An industry source noted, "While the commercial banks may propose benefits or favorable collaboration conditions, it seems unlikely that Upbit will easily sever its relationship with K Bank; there is significant interest in whether the partnership between Upbit and K Bank will continue."