South Korea’s KB Bank to Offer Crypto Investment Fund

South Korean banks see the future of cryptocurrencies as KB Bank becomes the first lender in the country to consider offering crypto investment products to retail clients. Earlier, another lender in the country allowed customers to manage their non-fungible tokens (NFTs) on the banking app.

Announced on Monday, KB Bank formed a Digital Asset Management Preparatory Committee that will research and determine the digital asset products and strategies to be offered. It will also consider on
 
 compliance 
and risk of such offerings.

The bank is expected to launch crypto exchange-traded funds (ETFs) and futures products. Though it did not provide any timeline for the upcoming digital asset product launch, it assured that they will be rolled out soon.

“We will launch a virtual asset-themed equity fund, etc., as soon as possible. We will also publish periodicals,” said Hong-Gon Kim, the Head of KB Asset Management’s Index Quant Management Division.

The bank wants to launch one crypto investment index fund and another that utilizes an outsourced chief investment officer (OCIO), which might be used for retirement pensions. Both these funds will provide guarantees on principal investments.

Additionally, the official press release of KB Bank pointed out Grayscale and Fidelity Asset Management that might be considered as the OCIOs.

Mainstream Demand for Crypto Is Rising

South Korea is one of the top crypto markets when it comes to retail adoption. It is home to some of the popular crypto exchanges and the government is actively discussing policies around
 
 cryptocurrencies 
, including taxation.

However, KB Bank, which is among the largest lenders in the country, has fallen behind other Asian banks in bringing crypto products. Singapore’s DBS already launched crypto trading services for institutions and is now set to bring these services to retail customers.

South Korean banks see the future of cryptocurrencies as KB Bank becomes the first lender in the country to consider offering crypto investment products to retail clients. Earlier, another lender in the country allowed customers to manage their non-fungible tokens (NFTs) on the banking app.

Announced on Monday, KB Bank formed a Digital Asset Management Preparatory Committee that will research and determine the digital asset products and strategies to be offered. It will also consider on
 
 compliance 
and risk of such offerings.

The bank is expected to launch crypto exchange-traded funds (ETFs) and futures products. Though it did not provide any timeline for the upcoming digital asset product launch, it assured that they will be rolled out soon.

“We will launch a virtual asset-themed equity fund, etc., as soon as possible. We will also publish periodicals,” said Hong-Gon Kim, the Head of KB Asset Management’s Index Quant Management Division.

The bank wants to launch one crypto investment index fund and another that utilizes an outsourced chief investment officer (OCIO), which might be used for retirement pensions. Both these funds will provide guarantees on principal investments.

Additionally, the official press release of KB Bank pointed out Grayscale and Fidelity Asset Management that might be considered as the OCIOs.

Mainstream Demand for Crypto Is Rising

South Korea is one of the top crypto markets when it comes to retail adoption. It is home to some of the popular crypto exchanges and the government is actively discussing policies around
 
 cryptocurrencies 
, including taxation.

However, KB Bank, which is among the largest lenders in the country, has fallen behind other Asian banks in bringing crypto products. Singapore’s DBS already launched crypto trading services for institutions and is now set to bring these services to retail customers.

Source: https://www.financemagnates.com/cryptocurrency/news/south-koreas-kb-bank-to-offer-crypto-investment-fund/