Image: Twitter

South Korea’s oldest bank has put its weight behind a digital-asset custody collaboration.

Shinhan Bank has invested in Korea Digital Asset Trust (KDAC), an industry consortium of businesses that provides digital-asset custody, according to local news agency Yonhap.

The initiative was launched by Korbit in collaboration with blockchain startup Blocko and digital-asset research firm Fair Square Lab, Cointelegraph reports.

With the new investment, Shinhan Bank moves closer to offering its own cryptocurrency custody services. In August 2020, the bank announced its intention to roll out crypto custody services alongside Woori, another leading bank in the country. 

Shinhan Financial Group chairman and CEO Yong-Byung Cho said, “We will secure competitiveness in custody services and proactively respond to the rapidly changing digital asset market due to the implementation of the Special Financial Information Act.”

Shinhan Bank has previously invested in other companies backing the KDAC initiative and is involved in related activities such as blockchain stock lending.