South Korea’s leading telecom and financial giants, SK Telecom and Hana Financial Group, have become major shareholders in the Korean branch of BitGo.
BitGo CEO Mike Belsh announced the news during the Korea Blockchain Week 2024 event in Seoul, according to a report from Yonhap News Agency.
Hana Financial has acquired a 25% stake in BitGo Korea, while SK Telecom has secured a 10% share.
BitGo Korea to Expand Market Share With New Collaboration
The collaboration between BitGo and South Korea’s telecom giants aims to bolster the platform’s position in the local market, with a broader goal of advancing the institutionalization of cryptocurrency in South Korea.
Hana Financial plans to enhance the local crypto ecosystem by offering secure and reliable custody services through BitGo.
Meanwhile, SK Telecom will leverage its expertise in user authentication, security, and identity verification to improve the accessibility of BitGo’s services for Korean clients.
BitGo Korea was established as a joint venture between BitGo and Hana Bank earlier this year, following an initial partnership that began in September of the previous year.
BitGo Korea is currently in the process of obtaining a license as a virtual asset service provider in South Korea.
BitGo, founded in 2013, manages approximately $70 billion in assets under custody, with about 20% of on-chain Bitcoin transactions facilitated through its infrastructure.
Hana Financial Group is one of South Korea’s largest financial institutions, with assets totaling approximately 592 trillion won ($441.4 billion) as of the end of 2023.
SK Telecom, the country’s dominant telecommunications provider, holds around 40% of the market share.
In May, the Delaware Supreme Court ruled in favor of BitGo by overturning a lower court’s dismissal of the company’s $100 million lawsuit against Galaxy Digital.
The lawsuit stems from a failed acquisition between the two entities.
Galaxy, led by Mike Novogratz, had announced its intention to acquire BitGo in May 2021 as part of its public offering in the United States.
However, in August 2022, Galaxy terminated the BitGo acquisition, citing a breach of contract.
South Koreans Turn to Crypto
A recent survey has revealed that most young South Koreans are losing faith in the national pension system, with many stating they see crypto and stocks as a better alternative.
The study found that more than three-quarters of people aged 20-39 “don’t trust” state-issued pensions.
Over half of respondents who said they were making their own pension plans claimed they were building their retirement funds with stocks and crypto.
Interestingly, even election candidates themselves have exposure to cryptocurrencies, with approximately 7% of them owning digital assets, according to a report by Yonhap that analyzed their asset disclosures.
Just recently, it was reported that South Korea is set to introduce stricter regulations for token listing on exchanges, including the blocking of tokens that have been hacked.
Notably, South Korea plays a significant role in the global cryptocurrency market, with the South Korean won being the most traded fiat currency pair in the first quarter of the year.
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