Banks have started integrating with the crypto world. South Korea’s Kookmin Bank has announced that it will offer crypto investments to its retail investors.
On February 21st, Kookmin Bank stated that it had formed a committee called Digital Asset Management Preparatory Committee. The notice says that the committee will start deciding the crypto investments funds that they would like to offer to the investors.
Moreover, the committee will also evaluate the risk and compliance issues related to the crypto funds. Additionally, the company is looking to launch crypto ETFs (exchange traded funds) and futures products.
For the unaware, Kookmin Bank is one of the four largest banks in South Korea. Also, for the past few years, the bank has been showing an increasing interest in the digital asset world.
Kookmin Bank Member Confirms Crypto Investment Plan
The Head of Index Quant Management at KB, Honggun Kim, confirmed the crypto investment plans. In KB’s official notice, Kim talked about the bank’s digital asset plans. He revealed, “We will launch a virtual asset-themed equity fund, etc. We plan to publish periodicals as well.”
However, their current plan includes launching a crypto investment index and outsourced investment management fund. With a crypto investment index, investors will be able to track the movements of a group of cryptocurrencies within an index.
Moreover, an outsourced investment management fund is also called an Outsourced Chief Investment Officer (OCIO). Here, the bank partially or fully outsources its investment function to a third party. This third party could be an asset management company or an investment consultant.
The OCIO will provide guarantees on principal investments. Additionally, they might be used in retirement pensions. The bank is considering Grayscale and Fidelity Asset Management for its OCIO.
Kookmin Bank- One Of The Early Adopters of Cryptocurrency
Even though most banks hesitate to venture into the crypto world, KB bank has been one of the active banks in this space. The bank has crypto dealings that date back to 2017.
Evidently, KB bank established a partnership with crypto exchange platform, Bithumb, in 2017. However, due to some information leakage, the partnership ended.
In 2020, the bank announced their investment plans with Korea Digital Asset company. Moreover, KB also applied for a trademark called KBDAC (Kookmin Bank Digital Asset Custody) in the same year.
With its new move to launch a crypto investment fund, the bank is capitalizing on the increasing popularity of cryptocurrency.
In 2020, one of KB’s spokesmen talked about the digital asset dealings of the bank. They said that, “By creating an ecosystem of the digital asset market, we will discover innovative services with market participants and create growth opportunities together.”