Kookmin Bank is preparing to become the first bank in South Korea to offer cryptocurrency investment products to retail investors..
KB announced on Monday that it had formed a Digital Asset Management Preparatory Committee to determine product and strategy capabilities in relation to digital assets and AI investment funds.. The bank hopes to launch exchange-traded funds (ETFs) and cryptocurrency futures products. The committee will also assess the risks and compliance of investment funds.
The plans were confirmed by KB’s head of quantum index management, Honggun Kim, in the bank’s official statement. He said: “We will launch a virtual asset themed equity fund, etc. We also plan to publish regular publications”.
KB Financial Group, the country’s largest company by net profit, had about $520 billion in total assets as of September 2021according to the research platform Macrotrends.
Current plans are to launch a cryptocurrency investment index fund and a fund that uses an outsourced investment manager (OCIO), also called outsourced investment management, in order to provide guarantees on core investments.. The OCIO fund can also be used for retirement pensions.
OCIOs to consider include Grayscale and Fidelity Asset Management, which offer cryptocurrency investment funds.. Fidelity Canada launched a spot Bitcoin ETF last December, although this product has not yet been approved in the United States.
By launching a new investment fund for its clients, KB is responding to a market that has become increasingly receptive to investments in crypto and non-fungible tokens (NFTs).. Its close competitor, Shinhan Bank, has dedicated an entire section of its mobile banking app to help customers manage their NFT collections on Klaytn, the country’s leading blockchain.
KB now follows Singapore megabank DBS in announcing new retail cryptocurrency investment products. DBS Bank CEO Piyush Gupta stated on Feb. 14 that the bank would work to scale its cryptocurrency operations by 2022.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.