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The banking sector is accelerating competition to secure an early lead in the digital asset market by expanding partnerships with domestic and overseas digital asset firms, particularly in areas such as overseas remittances and payment systems. As the potential for digital assets to integrate with traditional financial services grows, banks are seen competing to preemptively secure relevant technologies and business foundations to seize market leadership.

According to the financial sector on the 13th, Jeonbuk Bank became the first in the banking industry to roll out won-denominated loans backed by Bitcoin as collateral, starting on the 12th. The Bitcoin pledged as collateral is held under the management framework of a professional custody and management provider, structured so that Jeonbuk Bank does not hold ownership or custody rights over the coins themselves. On the same day, in collaboration with digital asset data firm Bonanza Lab, Jeonbuk Bank also launched a service allowing users to check information from the country's five major digital asset exchanges on its mobile platform, Ssok Bank.

Other banks are also picking up speed in digital asset ventures. Last month, KB Kookmin Bank signed an agreement with BNY in the U.S. for cross-border digital asset settlements and overseas remittances, while Shinhan Bank completed technical proof-of-concept testing with the Solana Foundation to apply stablecoins across the entire corporate overseas remittance process. Hana Bank also signed a tripartite agreement this month with Hana Card and stablecoin issuer Tether, exploring potential linkages between global stablecoins and domestic financial services. Other major commercial banks and internet-only lenders are likewise joining the fray, centering on collaborations with domestic and global digital asset firms in areas such as cross-border transfers and payment infrastructure.

While institutionalization regarding the stabilization and utilization of digital assets remains underway, banks appear to be prioritizing securing an early market foothold rather than waiting to launch businesses after regulatory frameworks are fully established. This is viewed as a strategy to prepare for future institutionalization and enhance competitiveness by preemptively securing related technologies and collaborative partnerships from the market's nascent stage.

Banks are concentrating their collaborative efforts on payments and remittances because integrating blockchain technology with existing financial infrastructure can heighten efficiency across payment and transfer processes. Stablecoins are digital assets designed to be pegged to the value of specific fiat currencies, such as the Korean won or the U.S. dollar.

Expectations of market growth are also underpinning banks' business expansion. According to the Bank of Korea, the global asset tokenization market stood at approximately 50.4 billion U.S. dollars (about 68 trillion won) as of the end of March this year. Global investment banks and leading consultancies, including Deutsche Bank and McKinsey, project that the asset tokenization market will reach 2 trillion to 4 trillion U.S. dollars (about 2,686 trillion to 5,370 trillion won) around 2030.

Digital asset operators also need cooperation with banks. Utilizing digital assets in real financial transactions requires touchpoints that allow users to deposit and withdraw assets, make payments, and transfer funds in connection with traditional financial services. Partnerships with banks offer digital asset companies opportunities to expand their service scope, while serving as a vehicle for banks to secure new technologies and business models. As the interests of both sides align, collaboration is expanding beyond simple technical verification toward practical service implementation and user acquisition.

Oh Moon-sung, professor of taxation and accounting at Hanyang Women's University, said, "There are so many financial services that can be conducted through digital assets that as the market becomes more active, institutions risk losing market share if they do not act quickly." He added, "There is a sense of crisis that things could become very difficult without broadening the base in terms of technology and network relationships, which is driving banks to actively pursue related businesses."

                                                                                                              Chae Jong-il