SK Telecom and Hana Financial Group have made strategic moves in the cryptocurrency space by becoming major shareholders in BitGo's Korean branch. BitGo CEO Mike Belsh announced this development during the Korea Blockchain Week 2024 event in Seoul, as reported by Yonhap news Agency.
BitGo Korea to Expand Market Share With New Collaboration
The collaboration between BitGo and South Korea's telecom giants aims to strengthen the platform's presence in the local market and enhance the institutionalization of cryptocurrency in South Korea. Hana Financial intends to boost the local crypto ecosystem by providing secure custody services through BitGo, while SK Telecom will utilize its expertise in user authentication and security to enhance accessibility to BitGo's services for Korean clients.
BitGo Korea was established as a joint venture between BitGo and Hana Bank earlier this year, following an initial partnership that commenced in the previous year.
BitGo Korea is currently in the process of securing a license as a virtual asset service provider in South Korea. Founded in 2013, BitGo manages approximately $70 billion in assets under custody, facilitating about 20% of on-chain bitcoin transactions through its infrastructure.
Hana Financial Group, one of South Korea's largest financial institutions with assets totaling approximately 592 trillion won ($441.4 billion) as of 2023, has acquired a 25% stake in BitGo Korea. On the other hand, SK Telecom, the dominant telecommunications provider in South Korea, now holds a 10% share in the company.
South Koreans Turn to crypto
A recent survey unveiled that many young South Koreans are losing faith in the national pension system and are turning to alternative investment options like crypto and stocks. The study indicated that over three-quarters of individuals aged 20-39 do not trust state-issued pensions, with more than half of respondents planning for their retirement using stocks and cryptocurrencies.
Even political candidates in South Korea have exposure to cryptocurrencies, with approximately 7% of them holding digital assets according to asset disclosures analyzed by Yonhap. This trend reflects the growing interest and adoption of cryptocurrencies among various segments of society.
South Korea is set to implement stricter regulations for token listing on exchanges, including measures to block tokens that have been involved in hacking incidents. The country plays a significant role in the global cryptocurrency market, with the South Korean won emerging as the most traded fiat currency pair in the first quarter of the year.
