Jeonbuk Bank, a subsidiary of JB Financial Group, has introduced South Korea's first digital asset-linked won loan program using Bitcoin as collateral. Currently available exclusively to corporate clients for business operating funds, the product marks a significant milestone in integrating virtual assets into the country's traditional banking sector.
The bank does not directly custody Bitcoin; instead, qualified virtual asset service providers manage the collateral. In case of default, Jeonbuk Bank will not acquire ownership of the asset but will liquidate it through court auctions under revised Civil Execution Rules. The bank has completed stress testing and implemented a valuation system based on weighted average prices from multiple global exchanges.
South Korea's Jeonbuk Bank Launches First Bitcoin-Collateralized Won Loan Program
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