Woori Financial Group, one of South Korea's largest banks, has reportedly struck a deal that will see it take part in a joint venture focused on cryptocurrency custodial services.
The Korea Economic Daily reports that Woori is pairing up with Coinplug on the joint venture. D-Custody, as the new company is called, will count Coinplug and Woori as its first and second-largest shareholders, respectively. The company has yet to be officially unveiled, per the Economic Daily.
The news follows announcements from other major South Korean banks about their own forays into the world of crypto custody. Last year, KB Kookmin partnered with Hashed and Haechi Labs to launch a digital asset custody-focused business. Shinhan Bank and NH Bank have also moved in recent months to establish services in the crypto market.
The business moves come as South Korea's government tightens regulations around exchange firms, including a push to prevent employees of crypto exchanges from trading on their respective platforms. These new requirements come into force in September.