Retail investors in South Korea can now access crypto investment funds and products as Kookmin Bank (KB Bank) becomes the first bank to offer crypto investment services in the country.
The investment funds which will include crypto index and ETFs will be the first investment service of its kind provided by a bank in South Korea.
KB financial group, the parent body of KB Bank, is South Korea’s biggest financial institution with about $520 billion in total assets valuation in September, 2021. They offer various investment services that borders on onshore and offshore in the domestic and global markets.
In pursuance of their commitment in offering unique investment products, the finance giant announced that they have constituted a Digital Asset Management Preparatory Committee (DAMPC) to evaluate and ascertain the usability, acceptability and capabilities of products and services relating to digital assets and investment funds.
As KB Bank prepares to launch the crypto Exchange Traded Funds (ETF) and many other investment services, the committee mentioned earlier is also tasked with the duty of assessing risk degrees and the general compliance for the newly launched investment funds.
Investment Relief for Investors
With the planned crypto investment funds, investment is made safer and easier in South Korea. For efficiency and effectiveness, the crypto investment funds will make use of an Outsourced Chief Investment Officer (OCIO), alternatively known as Outsourced Investment Management (OIM). These OCIO’s can also be used for retirement pensions purposes.
Officially confirming the above information, the Head of KB’s Index Quantum Management (IQM), Honggun Kim, revealed that in line with the launch of the crypto investment funds and an Equity Fund, KB Bank will have periodicals published in that regard.
Furthermore, in the official statement released, Grayscale and Fidelity Asset Management are the two types of OCIO to be utilized as they both offer crypto investment funds services.
A Responsive Action
Cryptocurrencies and Non-Fungible Tokens (NFTs) no doubt are breaking strong resistance and gaining unprecedented acceptability amongst investors and countries. Thus, the planned launch of the crypto investment funds by KB Bank in South Korea, is in response to these growths.
As the crypto markets constantly evolve, financial institutions tend to tilt its policies to accommodate new market trends, and at the same time offer on the demand services to their customers. In the US, New York Stock Exchange – NYSE has announced its readiness to storm the NFT marketplace; to buy and sell NFTS and also serve as an exchange platform where NFTs can be traded or exchanged.
In South Korea, KB Bank’s rival and competitor, Shinhan Bank, recently mapped out a part of its mobile banking app to aid clients and NFT investors track and manage the NFTs on the country’s foremost blockchain, Klaytn.
The government of Colorado has also announced its acceptance of cryptocurrency as a medium of tax payment by its citizens.
Following the instances above, it is credible to state that financial institutions are on top of their games, to provide on the demand investment services to their various customers in 2022.