South Korea’s second largest bank — Shinhan Bank — has just announced the creation of a cryptocurrency custodian service that will provide added layers of security for holders who choose to secure their investments through Shinhan.
The service will be called Banknote. Its announcement comes on the heels of Coinbase’s recent launch of Coinbase Custody — an enterprise-grade security service aimed at spurring institutional investments in cryptocurrencies.
And with Shinhan being one of the largest banks not only in South Korea but in all of Asia, its development of Banknote represents a significant and foreboding adoption milestone for the cryptocurrency space.
— ɔɔ.cc (@CryptoCurrent) November 24, 2017
Shinhan began working on Banknote in the beginning weeks of 2017.
The move seems particularly prescient now, as Bithumb — one of the most dominant Bitcoin exchanges in South Korea — has been compromised more than once since this past summer.
And since Shinhan Bank is billing Banknote as a way to invest in cryptocurrencies while still having the security advantages only a large bank can provide, South Korean buyers may continue flocking to make crypto investments in droves.
That dynamic bodes well for the prices of bitcoin and ether as Banknote gets set to launch, as Korean buyers have been playing a major, even out-sized, role in the current and ongoing crypto bull market.
Banknote, then, means more mainstream South Korean buyers are going to come out of the woodwork — a reality that suggests more upward price pressure is imminent.
And to make the entire custodian service more attractive for first-time clients, Shinhan Bank is offering fee-less crypto deposits for their initial wave of Banknote clients.
Instead, these customers will only have to contend with modest withdrawal fees thereafter.
TLDR: The second largest bank in South Korea is preparing to launch Banknote – a crypto custodian service that will serve as a virtual vault for clients.