KB Kookmin Bank, the largest financial institution in South Korea by net profit, is planning to launch its first Bitcoin and other cryptocurrency investment fund.
KB announced today that it has formed a Digital Asset Management Preparatory Committee to determine product capabilities and strategies regarding digital assets and AI investment funds.
Additionally, the bank expects to launch crypto exchange-traded funds (ETFs) and future products. The board will also assess risk and compliance issues for mutual funds.
The bank plans to prepare for the preemptive launch of related products through domestic and overseas digital asset market research. With the quickly growing adoption of digital assets in major countries, the bank intends to launch crypto offerings as soon as possible after deregulation in Korea, KB mentioned in a press statement.
Hong-Gon Kim, KB Asset Management’s lead for the Index Quant management division said:
“We will launch virtual asset-themed equity funds as soon as possible. We plan to hold a virtual asset conference for customers and publish periodicals.”
Similarly, current plans are to launch a crypto investment index fund to use an Outsourced Director of Investments (OCIO). OCIO is an outsourced investment management company that provides guarantees on principal investments. In addition, the OCIO fund can also be used as a retirement pension.
Additionally, KB is launching a new investment fund for its clients in response to the market becoming more receptive to investments in cryptocurrencies and non-fungible tokens (NFTs).
What is the driving force? KB points that several financial institutions across the globe have already entered the digital asset market. “Grayscale, which manages the most virtual assets in the world, has over $10 billion in assets under management, and Fidelity Asset Management has launched a Bitcoin spot exchange-traded fund in Canada,” states Kookmin Bank.
In particular, in Asia, DBS Group Holdings, the largest bank in Singapore, established a virtual asset exchange for the first time in an Asian financial institution, and domestic banks are also interested in entering the virtual asset custody business.
As of September 2021, KB had around $520 billion in total assets. KB, the most profitable bank in Korea, reported 2.59 trillion won ($2.2 billion) in net profit last year.
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